international freelancing!

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This topic contains 3 replies, has 3 voices, and was last updated by  Michael_Rosmer 2 months, 1 week ago.

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  • #4471

    ronen a
    Participant

    First of all thank you for all of your insights on this forum. very useful. I have a question which I would welcome your thoughts.

    I have a one man consulting business and I recently relocated to a new jurisdiction where I should only pay taxes on my domestic work.

    My clients are oversea (around the world) and I either work from home (via a laptop or conference calls) or visiting clients; s sites (around the world, ocassional visits I might be working in single country for no more then 10 days a year and this is normally covered in the DTA, if that’s important). Clearly I should pay local taxes for the work that I do from my home. So I have setup a business in my home country and I charge my client through an umbrella company in 2 parts – international fees and home office fees ( the fee is based on hours so number of hours multiple rate for Home work and for international work).

    For the home office fees I issue an invoice as the business is register. But I don’t issue any invoice for the international work ( apart from letting them know the required fees based on my timesheets).

    This arrangement is working in the eyes of my accountant or the umbrella company (and its compliance department as my accountant declare I pay the relevant taxes in my home country – which are only applicable for the work that run domsetically). So it seems to be working but I just find this a bit odd, I don’t really issue a proper invoice for my international business as its not really incorporated anywhere! But then again it just me.

    Am I compliant?

    Thanks,

    • This topic was modified 2 months, 4 weeks ago by  Streber.
    #4480

    unstoppable
    Participant

    What about your customers? Why don’t they want an invoice for the international fees that you are charging them?

    #4527

    ronen a
    Participant

    so i have one main customer who liaise with him through an umbrella company which reside offshore (Hong Kong). i have a contract with them. and as long as i provide a certified letter from my accountant they are ok with this. since i am not liable for income that arise outside my home country my accountant is happy to vouch for this.

    #4596

    Michael_Rosmer
    Participant

    So what you’re saying is when you are physically located in your home country you invoice and pay taxes on that income. When you’re traveling outside the country you don’t invoice just tell the clients what they owe and don’t declare or pay tax on that income?

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