Working Overseas and Your Taxes

I’m currently in negotiations to do some remote work for a Silicon start-up. As this is my first time working in one country and getting paid in another, I dived into my research to understand the complexities of international tax laws. Here is a summary of my findings with links provided at the end.

Scenario 1: Employee living overseas; citizen/resident of corporation country/countries.

In this scenario, employees can live abroad and receive payments in their “home” bank account. This way the taxes can be automatically deducted using a PAYE system. If you’re looking for remote work opportunities, you’ll find that many companies prefer this scenario due to its ease of navigating employment laws, payment methods, and taxes.

Scenario 2: Employee living overseas; non-citizen/non-resident of corporation country/countries

Employees can receive a gross salary and take responsibility for paying their own taxes.

Or they can be “seconded” to temping agencies such as ‘Manpower’; in this case the employees are paid by the local temp agency while they work for the original employer.

Or, employees can be paid as independent contractors, though caution is advised to ensure that they qualify as an independent contractor.

Note, if the employee should spend considerable time working in the country of payment, they could also be liable to double taxation.

In either scenario, by hiring an employee based in a foreign country, depending on the countries concerned, the company may be legally required to open a corporate entity in that country from which the employee will be hired and paid.


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Introduction to our blog

Robert T. Kiyosaki, in his best-selling book ‘Rich Dad, Poor Dad’, impresses upon his audience the need for financial intelligence and literacy. Unfortunately, reading through financial jargon can be frustrating, and let’s face it, mind-numbing! However, the world as we know it today is becoming increasingly unpredictable so becoming financially savvy is a must. In this blog, we aim to break the myths around money and present to you, the reality of money in the most financially-friendly way.