California Form 589 - Nonresident Reduced Withholding Request - 2016 Page 3
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1
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3Specific Instructions
Line 2 – Advertising
Do not include charitable contributions. In
Enter any advertising expenses that are directly
addition, you cannot deduct fines or penalties
Use black or blue ink to complete this form.
related to the date(s) of the services performed.
paid to a city, county, or state government
agency for violating any law.
Taxable Year – Make sure the year in the upper
Line 3 – Commissions and Fees
left corner of Form 589 represents the taxable
Enter any commissions and fees paid that are
Line 12 – Total Amount of Expenses
year for which the services are being performed.
directly related to the date(s) of the services
Add lines 2 through 11. This is the total amount
performed.
of direct expenses the payee incurred or paid
Private Mail Box (PMB) – Include the PMB in
for the date(s) of the services performed.
the address field. Write “PMB” first, then the box
Line 4 – Cost of Labor (Contract Labor)
number. Example: 111 Main Street PMB 123.
Enter the total cost of labor for the date(s) of
Line 13 – Net California Source Payment
services performed. Do not include salaries
Subtract line 12 from line 1. This is the net
Foreign Address – Follow the country’s
and wages paid to your employees.
California source payment after the payee
practice for entering the city, county, province,
subtracts all direct expenses. This is the
state, country, and postal code, as applicable,
Line 5 – Insurance
amount subject to 7% withholding.
in the appropriate boxes. Do not abbreviate the
Enter the premiums paid for business
country name.
insurance related to the date(s) of services
Line 14 – Withholding Amount
performed. Do not enter amounts credited to
Multiply the amount on line 13 by 7%. This is
You must provide an acceptable TIN as requested
a reserve for self-insurance or premiums paid
the proposed reduced withholding amount.
on this form. The following are acceptable
for a policy that pays for lost earnings due to
This amount must be verified and approved by
TINs: social security number (SSN); individual
sickness or disability.
the FTB prior to the payee receiving payment
taxpayer identification number (ITIN); federal
for services.
employer identification number (FEIN); California
Line 6 – Legal, Professional, and/or
corporation number (CA Corp no.); or California
Management Fees
Payee’s Signature
Secretary of State (CA SOS) file number.
Enter the fees paid for legal, professional,
and/or management advice related to the
Complete the payee’s and preparer’s
Part I – Withholding Agent
date(s) of the services performed.
information. The FTB will not process this form
The withholding agent is the party that
without a signature.
Line 7 – Rent or Lease
will be providing payment to the payee for
Enter the amount paid to rent or lease vehicles,
Additional Information
services performed. Enter only business or
machinery, equipment, or other property, such
individual information, not both, and check the
as office space, that is related to the date(s) of
For additional information or to speak to a
appropriate TIN box.
the services performed. Do not include rent for
representative regarding this form, call the
rental property.
Withholding Services and Compliance telephone
Part II – Payee
service at 888.792.4900 or 916.845.4900.
Line 8 – Supplies
Enter only business or individual information,
Enter the cost of supplies consumed and used
OR write to:
not both, and check the appropriate TIN box for
during the date(s) of the services performed.
WITHHOLDING SERVICES AND
the payee who will be performing the services.
Line 9 – Travel, Meals, and Entertainment
COMPLIANCE MS F182
Doing Business As (DBA) – If you are a sole
Enter the expenses for lodging and
FRANCHISE TAX BOARD
proprietor or entertainer, and performing under
transportation connected with overnight travel
PO BOX 942867
a different name, include the DBA in this field.
away from your home that is directly related
SACRAMENTO CA 94267-0651
Do not enter a business name.
to the date(s) of the services performed. Enter
You can download, view, and print California
only the deductible portion of the business
Part III – Type of Income
tax forms and publications at ftb.ca.gov.
meal and entertainment expenses that are
Subject to Withholding
directly related to the date(s) of the services
Or to get forms by mail, write to:
performed.
Check the box that reflects the type of payment
TAX FORMS REQUEST UNIT
that will be received for services performed on
Line 10 and Line 11 – Other Expenses (specify)
FRANCHISE TAX BOARD
Enter other direct expenses, costs, or special
the date(s) specified. Check one type only.
PO BOX 307
circumstances that justify reduced withholding,
RANCHO CORDOVA CA 95741-0307
Date(s) of Service – Enter the date(s) the
including all ordinary and necessary business
services are being performed. The dates of
For all other questions unrelated to withholding
expenses not deducted elsewhere on Form 589.
service should reflect the same taxable year as
or to access the TTY/TDD numbers, see the
List the type and amount of each expense
shown in the upper left corner of Form 589.
information below.
separately in the space provided. If additional
Internet and Telephone Assistance
Part IV – Withholding
space is needed, attach a separate schedule
that lists the type and amount of each expense.
Website:
ftb.ca.gov
Computation
Telephone: 800.852.5711 from within the
A foreign partner must attach a completed
Line 1 – Enter the total gross California
United States
and signed federal Form 8804-C, including
source payment the payee expects to receive
916.845.6500 from outside the
documentation on the California expenses,
for performing services. If the payee and
United States
to the Form 589. Enter the total of California
withholding agent have entered into a contract
TTY/TDD:
800.822.6268 for persons with
amounts from federal Form 8804-C, lines 8a
for services, this amount should match the
hearing or speech impairments
through 8f, on Form 589, line 10.
gross payment. A foreign partner enters the
Asistencia Por Internet y Teléfono
Do not include depreciation, principle on the
gross payments of ECTI from California sources.
mortgage payment, or second mortgage.
Sitio web:
ftb.ca.gov
Expenses – The payee should enter any direct
Teléfono:
800.852.5711 dentro de los
Do not include the expenses paid or incurred
expenses on lines 2 through 11 that will be
Estados Unidos
by a third party, such as a booking agent or
incurred or paid by the payee for performing
916.845.6500 fuera de los
performance venue.
the services in California. The FTB may verify
Estados Unidos
Do not include the cost of business equipment
the expenses by requesting supporting
TTY/TDD:
800.822.6268 para personas con
or furniture, replacements or permanent
documentation. Payments the payee makes
discapacidades auditivas o del
improvements to property, or personal, living,
to nonresident third parties may meet the
habla
and family expenses.
requirements for withholding and remitting 7%
of the payment to the FTB.
Page 2
Form 589 Instructions 2015
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