Even if the foreign entity sends an invoice and pays their own tax, I don't think it's quite that simple. If the company hiring the contractor wants to deduct

Even if the foreign entity sends an invoice and pays their own tax, I don't think it's quite that simple. If the company hiring the contractor wants to deduct their expense from their taxes, the IRS will want to know why because typically a 1099 would be filed. I am not an accountant nor tax attorney, but I think that at the very least something like a W-8BEN would need to be filed: https://www.investopedia.com/terms/w/w8form.asp https://www.investopedia.com/terms/w/w8form.asp https://www.irs.gov/instructions/iw8ben https://www.irs.gov/instructions/iw8ben Long story short, at the very least, the person should speak with an accountant familiar with these filings to make sure all forms are filed. There will be some amount of paperwork to ensure they can survive an audit. These tax issues are separate from any additional legal considerations that may apply.