Are Puerto Rican entities treated like U.S. entities with regard to 1099 reporting?

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If your vendor is an entity formed under Puerto Rican law, you need to obtain a W-8. Puerto Rican entities are considered foreign under the U.S. tax code; reporting is done on the 1042-S.

However, individual Puerto Rican nationals are U.S. citizens. So if the vendor is not an entity, but is instead an individual, you should obtain a W-9 from them. If payments you made to the individual contractor total more than $600 in the calendar year, report those payments on a 1099-MISC.

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