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Correct me if I'm wrong, but I believe this is how it goes: you have an LLC in the US, use it for your work, pay taxes there. You travel on tourist/business vis

by jotm 13y ago

Correct me if I'm wrong, but I believe this is how it goes: you have an LLC in the US, use it for your work, pay taxes there. You travel on tourist/business visas and work on your laptop. No taxes in the countries you work out of. I guess it might seem a bit shady, but since you're working on your laptop with no help/input from the host country (consider the laptop a "tunnel" back to your home country or wherever your company is registered), why would you bother to go through all the bullshit required to get actual work visas everywhere (the bureaucracy is really nuts). Besides, you pay local taxes when you shop, rent an apartment, etc.

gamblor956 13y ago
You're wrong. Depending on the laws of the country in which you perform the work, you could be liable for taxes on the income attributable to that work. Location in this context is defined very simply: the physical location of the employee performing the work (see, e.g., the OECD Model Treaties). This definition avoids all of the technological complexities of remote working (i.e., VPN into another country, or through multiple countries). It has also been adopted by the vast majority of countries which you would want to visit. I.e., for example, if you code a $1 million project for a client, half in the US and half while traveling in France, you could owe France income taxes on 50% of that 1 million. (However, if that income is also taxable in the U.S., you generally would be protected from double-taxation by virtue of the tax treaty between the two nations.) Moreover, depending on the amount of time spent working in a country, you could be in violation of your visa, which could result in civil or criminal sanctions (most likely fines, but possibly including revocation of your visa). This issue is a very real concern, and multinational companies go to great lengths to avoid dealing with it. The EU has been aggressive about auditing companies on this issue, going so far as to demand detailed records about the physical location of directors during board meetings or about company operations conducted by traveling employees.
- jotm 13y ago
  Yes, that's all true if you go by the law - in reality most freelancers working and traveling do what I said and don't declare anything to the customs/host country. It is harder to do if you're employed by a relatively large company, though...

by jotm 13y ago

gamblor956 13y ago

You're wrong. Depending on the laws of the country in which you perform the work, you could be liable for taxes on the income attributable to that work. Location in this context is defined very simply: the physical location of the employee performing the work (see, e.g., the OECD Model Treaties). This definition avoids all of the technological complexities of remote working (i.e., VPN into another country, or through multiple countries). It has also been adopted by the vast majority of countries which you would want to visit. I.e., for example, if you code a $1 million project for a client, half in the US and half while traveling in France, you could owe France income taxes on 50% of that 1 million. (However, if that income is also taxable in the U.S., you generally would be protected from double-taxation by virtue of the tax treaty between the two nations.) Moreover, depending on the amount of time spent working in a country, you could be in violation of your visa, which could result in civil or criminal sanctions (most likely fines, but possibly including revocation of your visa). This issue is a very real concern, and multinational companies go to great lengths to avoid dealing with it. The EU has been aggressive about auditing companies on this issue, going so far as to demand detailed records about the physical location of directors during board meetings or about company operations conducted by traveling employees.

jotm 13y ago
Yes, that's all true if you go by the law - in reality most freelancers working and traveling do what I said and don't declare anything to the customs/host country. It is harder to do if you're employed by a relatively large company, though...