In general, you aren't obliged to withhold taxes from independent contractors. However, you may still need to report taxes.Who is require to withhold? • Withholding Agent. Tax Treaty benefits are taken on form W-8BEN. Click here for country list. Who is require to withhold? • Withholding Agent. All foreign nationals with earned income and nonresidents on F or J visas without income comply with U.S. tax laws. Otherwise, you could be subject to IRS penalties like steep fines and interest.