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Tax for Foreigners?

polycounter lvl 17
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Asmuel polycounter lvl 17
Hey, I've been trying to find out information on how someone from outside the US should be taxed on money made from a US based company. So far I've found some conflicting information and information which may not be applicable all written in technical gibberish. So hopefully someone here who has already gone through this or has some knowledge could chime in with some information on what steps I should take mad.gif.

I am not a US resident/citizen, doing contract work for a studio in Florida. I rang the Inland Revenue Department here to ask who I should be paying tax to, the US or NZ government and the eventual answer I got was they dont know. Its pretty fucking amazing how incompetent their telephone operators are, the information you get seems dependent on who picks up the phone. I think I will ring back tomorrow. Im considering getting an accountant to help me out with this not that I can afford it.

I wouldn't bother you guys here unless I was in a tight spot. Assume I am an absolute newb just incase some of what I am doing currently is incorrect or illegal mad.gif Thanks

Replies

  • MoP
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    MoP polycounter lvl 18
    I'm pretty sure in this case you should be paying tax to the NZ government, and not the US.

    I did some freelance contract work from the UK a few years ago and if NZ's tax system is anything like the UK's, then you have to declare yourself as "self employed", keep records of all your earnings and detail them in your tax return.
  • Toomas
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    Toomas polycounter lvl 18
    You can apply for US social security number or whatever it was through your local US embassy to fill out the US tax form. That way you pay your tax to USA and i think most countries dont have double tax system, meaning if you allready payd tax to USA you dont have to pay it again in NZ. But id advice you to read your local tax law, dont trust what goverment workers tell you over the phone.
  • HarlequiN
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    HarlequiN polycounter lvl 18
    Contact a financial adviser or lawyer/soliciter - they won't know either, but they will know likely be able to put you in contact with someone who will know.

    Technically I believe you're supposed to pay tax in the country you're earning the money in, rather than the country you're working for, but best contact someone who can verify that for sure.
  • CrazyButcher
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    CrazyButcher polycounter lvl 20
    going thru the same thing currently, I do the same stuff as MoP suggested, self-employed, keep records, tell financial office details on earnings and so on and pay tax locally. Unless you are really employed long-term by a foreign company, which wouldnt be the case for freelancers.
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