rooshvforum.network is a fully functional forum: you can search, register, post new threads etc...
Old accounts are inaccessible: register a new one, or recover it when possible. x


Freelancing income tax
#1

Freelancing income tax

Hey guys

I was wondering to start a career in freelancing doing some programming stuff, but i have question, i'm a national of a latin american country living also in latin america, if i start to work as
a freelancer for clients in the US and europe(not for the country i live in), do i have to pay income tax for what i earn?
If yes, any loopholes to avoid that?

Thanks!
Reply
#2

Freelancing income tax

You are usually taxed based on your place of residence, not the place of residence of your clients. Hence, you would need to report any income according to the tax code of your home (or residence) country. That being said, some people never "establish" a permanent residence in any country long enough to be considered a resident for tax purposes. This can work for some time but is expensive and difficult in the long run. Countries track your travels and will automatically establish your residence status based on the time spent in any one of them. A better option is to physically establish oneself in a low-tax (or better yet, no foreign income tax) jurisdiction and work from there. With internet-based work that is quite feasible. In any case, diligent research is in order before any concrete decisions are made.
Reply
#3

Freelancing income tax

Some US clients will ask or suggest that they need to withold income tax. They are incorrect, they only need to withold taxes if you come into the US to do the work. You will have to give them a W8 Ben form which acts as a statement that you are indeed not a US citizen and reside in latin america.

Why do the heathen rage and the people imagine a vain thing? Psalm 2:1 KJV
Reply
#4

Freelancing income tax

I found the best setup to incorporate in Hong Kong and open a bank account there (HSBC). You pay 0% taxes.
Reply
#5

Freelancing income tax

Quote: (03-16-2014 05:44 PM)conservative Wrote:  

I found the best setup to incorporate in Hong Kong and open a bank account there (HSBC). You pay 0% taxes.

Indeed, as long as travel isn't too much of an issue such a setup can be ideal. Think international w/regards to jurisdictions and the world as a chessboard to make your moves on.
Reply
#6

Freelancing income tax

Quote: (03-16-2014 05:59 PM)Model 800 Wrote:  

Quote: (03-16-2014 05:44 PM)conservative Wrote:  

I found the best setup to incorporate in Hong Kong and open a bank account there (HSBC). You pay 0% taxes.

Indeed, as long as travel isn't too much of an issue such a setup can be ideal. Think international w/regards to jurisdictions and the world as a chessboard to make your moves on.

Whats the deal with hong kong? they dont tax foreign income? Can anyone explain more about this?
thanks!
Reply


Forum Jump:


Users browsing this thread: 1 Guest(s)