4 ms·

But that's not being a freelancer at all. I have a business registered in the UK, my clients are international, I pay all business taxes in the UK, but I will o

• archagon 12y ago
  I've wondered about this but haven't found a clear answer. If I'm working on some projects under a US LLC, does it count as "work" in whatever country I'm currently in? Do I have to pay local taxes? Get a visa? And what does it mean for my tax situation in the US? Our laws weren't written for this manner of work, so I wonder how it's going to get resolved.
  • vidarh 12y ago
    Generally you should assume that yes, it will count as work in whatever country you're currently in, and doing it on a tourist visa is often illegal. In practice it will depend on exactly what you do, and where. E.g. I used to travel to US a lot on the visa waiver scheme, and was briefed by an expensive US immigration lawyer on how to answer immigration questions out of concern that if I were to answer the wrong thing I might get turned away even without actually ever doing anything wrong. In the US the general rule is that if you visit without a business visa, you can not do "productive work". That is, you can go to meetings and take instructions from your employer or a client, answer e-mails (but work you may need to do to be able to answer it may in theory not be allowed), or negotiate a contract, but you can't work on a project. In practice US immigration is pretty flexible as long as you're not taking the piss or give them reasons for concerns, and never overstay. Other countries can vary substantially - some will see you as an income stream for their country, others will see you as a nuisance, and treat you accordingly. When it comes to taxation, you should assume that yes, you have to pay local taxes unless you specifically know otherwise. In most countries there will be a time threshold and/or a matter of what work you do, and often you won't be able to stay long enough or do work that incurs taxation on the most basic business visas anyway. 3 or 6 months is a common threshold before being considered resident for tax purposes, but tax liabilities can be incurred before you're considered resident some places. In many cases there will be treaties in place that regulates which country you should be taxing to if you're ordinarily resident - or a citizen - somewhere else. If you're a US citizen, you have the added complication that the IRS considers its jurisdiction over US citizens as global, and so you need to check the situation before you do work abroad, as the absence of a tax treaty regulating income taxes can in the worst case mean you'll get taxed twice. And yes, our laws were written for this manner of work. People have been travelling across borders to work for centuries. There's an extensive amount of treaties and case law dedicated to handling this, and large numbers of lawyers specialising on giving advice on how to deal with this.
  • gamblor956 12y ago
    Our laws have covered this type of work for decades. There is even an established international framework for dealing with these types of situations. For tax purposes, the type of visa is irrelevant. What matter is whether the country has a tax treaty with the U.S. If you work while you're on vacation or otherwise temporarily in another country with which the US has a tax treaty, you generally shouldn't be subject to local country taxation. At the same time, however, you will remain fully subject to U.S. taxation on that income (assuming you are a U.S. citizen or permanent resident). If you stay in another country long enough to become subject to income taxation in that country, you will continue to owe taxes to the U.S., though you should generally be able to offset some or all of those local country income taxes paid. The U.S. generally provides a roughly $100k exemption for individuals; there is no exemption for business entities. If this is really a concern for you, you should probably talk to a lawyer or an accountant.
• slgeorge 12y ago
  It's very unlikely to work that way for most jurisdictions. Let's look at the situation if you had a US-based company and you visited the UK. While you were in the UK you did some work. The UK tax office will interpret that as meaning you are earning money within the UK jurisdiction and therefore you owe money. In this specific case there are set limits of days for when 'work' is deemed to have taken place, and you would handle it through the double taxation between UK-USA. But, to be clear in this simple example you would incur UK tax. I can't imagine which jurisdictions you're visiting that would not interpret you as "working".
  • MarkMc 12y ago
    Does that mean I'm not allowed to check my work emails if I take a vacation in Thailand or EU?