Phuket

marc26 · #1 01-06-2005, 11:09

ive heard that if you are working in a foreign land, you dont have to pay taxes. how does this work, and is it just for certain countries. i dont know if anyone would know, but id appreciate some input if you have it. my example would be a us citizen working in canada

LivinLOS · #2 01-06-2005, 11:28

Depends on the country you are from...

I hear the US is tough oon taxing you and even if you are paying local taxes in the overseas country they will double tax you cause they want thier share...

From the UK once you are outside for 183 days in one year you dont have to pay back home.. The reality is that once you are an expat and mobile where you pay tax becomes a moot point for us Brits (as long as you dont expect any services / pensions / medicre etc back there)..

Of course the best route is to incorporate an offshore company with secrecy of beneficial owners / shareholders / directors.. and use that vehicle to invoice for your services worldwide.. This comapny can then legally employ you at min wage and min tax levels (that you can decide) and also own property / cars etc and give you an expense account on offshore credit card.. This way all your lifestyle can be paid for and secured by a vehicle that cannot be tied to you or sued / divorced etc..

ancientmariner · #3 01-06-2005, 11:36

the official version:

http://www.irs.gov/publications/p54/ch04.html

stevem · #4 01-06-2005, 17:05

When I was working in Malaysia started out OK, was only paying local tax rates, which were I think 10%, nothing compared to tax rates back in Oz. But when it come around to tax time, got a big surprise, anything the company pays for you, like apartment, utility bills, airfares are all taxed at expat rates. So it ended up costing me a bloody fortune. Just be aware of any little hidden extras, before you think its a good deal.

Peter.g · #5 01-06-2005, 18:52

What are the tax in Thailand if you hv a company there and have a income of ca 100.000 Bath per month.

I heared it is 8% is that correct?

Anybody knows

Peter.g

ashley · #6 02-06-2005, 10:09

I have been working overseas for 6 years. Paying taxes in your homeland verses paying them in your employed land can be a little complicated. One of the main points to look at is if your country has a tax treaty with the country you are working in. This will make sure you are not being taxed twice. In your case the US does have a tax treaty with Canada. The other thing to consider is the length of time you will be working in that country. There are different lengths of time that will allow you to only pay the local tax where you are working. Also the tax rates come into consideration. The tax rate in Canada is higher than the US so you will not be double taxed. If it was infact lower than you would be the tax in Canada and the remaining tax owed in the US.

Another thing to consider is what sort of ties to you have to your home country in terms of assets. The less you have the better off you will be. You can take leave as a non resident of your native country for the time you are gone overseas working and this will clear you of any tax responsibilities with your home country. This also means that things like your medical insurance will not be valid anymore etc.

There are many things to consider when starting to work overseas. It is not just a simple move. If you dont plan things accordingly you could end up coming back to the US a few years down the road only to find out you owe thousands of dollars in back taxes.

Best to consult an accountant first and cover you azz before you go.

Hope I helped.

Cheers.

Ashley

Nicke · #7 02-06-2005, 12:24

Reg. owe taxes, I am surprised so many people here have done just that, escaped taxes in the home countries.

There was an article in Swedish newspaper yesterday about arresting a Swedish man in Pattaya who owed 12 million SEK (~60 million baht).

Quote:

Originally Posted by ashley

There are many things to consider when starting to work overseas. It is not just a simple move. If you dont plan things accordingly you could end up coming back to the US a few years down the road only to find out you owe thousands of dollars in back taxes.

LivinLOS · #8 02-06-2005, 14:55

My tax issues back in Europe extend well into double digit millions of Euro.. Its not like I actually managed to steal that money (would have done if I could) but they assessed a company under the tax regime of another country where we were operating (they are wrong and they closed a biz worth 10's of mil GBP but there was was politacl pressure as I was able to undercut the local labour market).. small differences in tax amounts (10% or 20% or so) when turning over many tens of million per year mean my legal issues are complex in some EU states..

I am told that in Thailand is drawing a min legal wage (for frangs) of 55k per month you must pay 6250 each month.. this is the amount youy must earn and pay to maintain a WP and not do 90 day visa runs.. This could be outdated or plain wrong but was what a lawyer told me a couple of years back..

marc26 · #9 02-06-2005, 19:43

thanks for your advice guys. i will only be working for 2-3 months. the company i am working for is a subsidiary of a us company in canada so i dont know if that means anything. i am sure they have had people from the us working there before and i will consult with them. now if they pay for my hotel, and living expenses, i have to declare that, how would anyone know that

Izzy · #10 02-06-2005, 22:49

While im not really able to offer more specific advice. I find the site http://www.lowtax.net/ to be quite helpful on various countries and their tax laws/treaties etc. While no replacement for proper advice Ive found it informative.

marc26 · #11 03-06-2005, 08:22

thanks guys, you all have been really helpful