California Form 589 - Nonresident Reduced Withholding Request

the determination letter for a minimum of four

Line 2 – Advertising

is needed, attach a separate schedule that lists

years and must provide them to the FTB upon

Enter any advertising expenses that are

the type and amount of each expense.

request.

directly related to the date(s) of the services

Line 12 – Total Amount of Expenses

performed.

Add lines 2 through 11. This is the total

Specific Instructions

Line 3 – Commissions and Fees

amount of direct expenses the payee incurred

Enter any commissions and fees paid that are

or paid for the date(s) of the services

Use black or blue ink to complete this form.

directly related to the date(s) of the services

performed.

Taxable Year – Make sure the year in the

performed.

Line 13 – Net California Source Payment

upper left corner of Form 589 represents the

Line 4 – Cost of Labor (Contract Labor)

Subtract line 12 from line 1. This is the net

taxable year for which the services are being

Enter the total cost of labor for the date(s) of

California source payment after the payee

performed.

services performed. Do not include salaries

subtracts all direct expenses. This is the

Foreign Address – Enter the information in

and wages paid to your employees.

amount subject to seven percent withholding.

the following order: City, Country, Province/

Line 5 – Insurance

Line 14 – Withholding Amount

Region, and Postal Code. Follow the country’s

Enter the premiums paid for business

Multiply the amount on line 13 by seven

practice for entering the postal code. Do not

insurance related to the date(s) of services

percent (.07). This is the proposed reduced

abbreviate the country’s name.

performed. Do not enter amounts credited to a

withholding amount. This amount must be

Private Mail Box (PMB) – Include the PMB

reserve for self-insurance or premiums paid for

verified and approved by the FTB prior to the

in the address field. Write “PMB” first, then

a policy that pays for the lost earnings due to

payee receiving payment for services.

the box number. Example: 111 Main Street

sickness or disability.

PMB 123.

Part V – Payee’s Signature

Line 6 – Legal, Professional, and/or

Part I – Withholding Agent

Management Fees

Complete the payee’s and preparer’s

Enter the fees paid for legal, professional,

information. The FTB will not process this form

Enter the business or individual withholding

and/or management advice related to the

without a signature.

agent’s name, identification number, and

date(s) of the services performed.

address. The withholding agent is the party

Additional Information

that will be providing payment to the payee for

Line 7 – Rent or Lease

services performed.

Enter the amount paid to rent or lease vehicles,

For more information regarding nonresident

machinery, equipment, or other property, such

withholding go to ftb.ca.gov and search for

Part II – Payee

as office space, that is related to the date(s) of

nonresident withholding or call 888.792.4900

the services performed.

or 916.845.4900.

Enter the business or individual name,

identification number, and address for the

Line 8 – Supplies

OR write to:

payee who will be performing the services.

Enter the cost of supplies consumed and used

WITHHOLDING SERVICES AND

Include the Doing Business As (DBA), in this

during the date(s) of the services performed.

COMPLIANCE

field, if you are an entertainer and performing

Line 9 – Travel, Meals, and Entertainment

FRANCHISE TAX BOARD

under a different name if applicable.

Enter the expenses for lodging and

PO BOX 942867

transportation connected with overnight travel

SACRAMENTO CA 94267-0651

Part III – Type of Income

away from your home that is directly related

Subject to Withholding

You can download, view, and print California

to the date(s) of the services performed. Enter

tax forms and publications at ftb.ca.gov.

only the deductible portion of the business

Check the box that reflects the type of payment

meal and entertainment expenses that are

Or to get forms by mail, write to:

that will be received for services performed on

directly related to the date(s) of the services

the date(s) specified. Check one type only.

TAX FORMS REQUEST UNIT

performed.

FRANCHISE TAX BOARD

Date(s) of Service – Enter the date(s) the

Line 10 and Line 11 – Other Expenses

PO BOX 307

services are being performed. The dates of

(specify)

RANCHO CORDOVA CA 95741-0307

service should reflect the same taxable year as

Enter other direct expenses, costs, or special

shown in the upper left corner of Form 589.

For all other questions unrelated to withholding

circumstances that justify reduced withholding,

or to access the TTY/TDD numbers, see the

Part IV – Withholding Amount

including all ordinary and necessary business

information below.

expenses not deducted elsewhere on

Line 1 – Enter the total gross California

Internet and Telephone Assistance

Form 589. List the type and amount of each

source payment the payee expects to receive

expense separately in the space provided.

Website:

ftb.ca.gov

for performing services. If the payee and

Telephone: 800.852.5711 from within the

A foreign partner must attach a completed

withholding agent have entered into a contract

United States

and signed federal Form 8804-C to the Form

for services, this amount should match the

916.845.6500 from outside the

589. Enter the total of California amounts from

gross payment. A foreign partner enters

United States

federal Form 8804-C, lines 8a through 8f, on

the gross payments of ECTI from California

TTY/TDD:

800.822.6268 for persons with

Form 589, line 10.

sources.

hearing or speech impairments

Do not include the expenses paid or incurred

Expenses – The payee should enter any direct

Asistencia Por Internet y Teléfono

by a third party, such as a booking agent or

expenses on lines 2 through 11 that will be

performance venue.

Sitio web:

ftb.ca.gov

incurred or paid by the payee for performing

Teléfono:

800.852.5711 dentro de los

Do not include the cost of business equipment

the services in California. The FTB may verify

Estados Unidos

or furniture, replacements or permanent

the expenses by requesting supporting

916.845.6500 fuera de los

improvements to property, or personal, living,

documentation. Payments the payee makes

Estados Unidos

and family expenses.

to nonresident third parties may meet the

TTY/TDD:

800.822.6268 personas con

requirements for withholding and remitting

Do not include charitable contributions. In

discapacidades auditivas y del

seven percent of the payment to the FTB.

addition, you cannot deduct fines or penalties

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paid to a city, county, or state government

agency for violating any law. If additional space

Page 2

Form 589 Instructions 2012

California Form 589 - Nonresident Reduced Withholding Request - 2013 Page 3

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