Working Remotely

[chadxara 0]

Hi,

I am planning to work online for a Philippine based company.

Am I allowed to work remotely in the US as long as I declare my earnings on my tax returns?

Or does the company in PH have to pay US taxes as well?

Thank you!

[VOL 425]

You will have to pay US taxes on it.

You may have to pay taxes on it in Philippnes also, But I am not familiar with tax codes in Philippines.....

[kipper_22 2]

Hi,

I am planning to work online for a Philippine based company.

Am I allowed to work remotely in the US as long as I declare my earnings on my tax returns?

Or does the company in PH have to pay US taxes as well?

Thank you!

It depends on your employment contract..I supposed you can be declared as an employee based in the US by the company so you dont have to pay taxes in the PHL. I know some ppl who works remotely for a US based company and they are declared as a PHL employee so they dont pay two taxes.

Edited March 6, 2015 by kipper_22

[Greenbaum 12,259]

Hi,

I am planning to work online for a Philippine based company.

Am I allowed to work remotely in the US as long as I declare my earnings on my tax returns?

Or does the company in PH have to pay US taxes as well?

Thank you!

If they can send you a 1099 form at the end of the year (http://www.irs.gov/uac/Form-1099-MISC,-Miscellaneous-Income-) then you can report the income and be in compliance with US law. Or you can declare it on your own when doing your 2015 Taxes.

[chadxara 0]

You will have to pay US taxes on it.

You may have to pay taxes on it in Philippnes also, But I am not familiar with tax codes in Philippines.....

I'm planning to pay taxes here. They'll also deduct taxes from my salary in PH.

[chadxara 0]

It depends on your employment contract..I supposed you can be declared as an employee based in the US by the company so you dont have to pay taxes in the PHL. I know some ppl who works remotely for a US based company and they are declared as a PHL employee so they dont pay two taxes.

It seems like I have to pay two taxes. :/ i'll look more into this. Thanks!

If they can send you a 1099 form at the end of the year (http://www.irs.gov/uac/Form-1099-MISC,-Miscellaneous-Income-) then you can report the income and be in compliance with US law. Or you can declare it on your own when doing your 2015 Taxes.

Thanks for the advise! I'll probably just declare in on my 2015 taxes since it seems easier. I'll talk to the company about my taxes in PH.

Cheers!

[Hank_ 9,174]

I'm planning to pay taxes here. They'll also deduct taxes from my salary in PH.

I am not a tax consultant, but I believe there is an agreement between the USA and the Philippines regarding "foreign income" that all is good as long as you pay the taxes in one country or the other.

[Umka36 781]

I am not a tax consultant, but I believe there is an agreement between the USA and the Philippines regarding "foreign income" that all is good as long as you pay the taxes in one country or the other.

Below is the tax treaty, should anyone feel the desire to read it:

http://www.irs.gov/pub/irs-trty/philip.pdf

[chadxara 0]

I am not a tax consultant, but I believe there is an agreement between the USA and the Philippines regarding "foreign income" that all is good as long as you pay the taxes in one country or the other.

Didn't know that. Thanks for the info. I guess I should seek an advice from a tax officer just to make sure.

Below is the tax treaty, should anyone feel the desire to read it:

http://www.irs.gov/pub/irs-trty/philip.pdf

Nosebleed!!! I shall try my best to read it, at lease some parts. Thanks for the link!

[Hank_ 9,174]

nosebleed! Love it!

[Greenbaum 12,259]

To view in full scale select the picture.

Edited March 10, 2015 by Greenbaum

[Hank_ 9,174]

[chadxara 0]

3-10-2015 5-54-44 PM.jpg

To view in full scale select the picture.

This is hilarious yet painful!!! You, sir, nailed my soon-to-be situation.

[Greenbaum 12,259]

This is hilarious yet painful!!! You, sir, nailed my soon-to-be situation.

Sorry to make fun of your situation, your a good person for being able to laugh at yourself.

[manilaraf 28]

I'll be filing my 1040 for the first time in a while (Wife & I finally made enough collectively to put us over the income requirement for filing in our filing category) for year 2014.

I work as a Doctor here in the PHL along with the wife.

I suggest having your PHL BIR Taxes filed first and once you do that, only then filing your 1040.

Since I work here, I definitely get taxed, but on my 1040 I can claim any foreign taxes paid as a credit or a deduction. (http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Tax-Credit---Choosing-To-Take-Credit-or-Deduction) I also get an automatic extension since I'm living abroad. Cheers for procrastination!

Your case is a little bit less cut and dried. I'd ask the company what to do or somehow get tax advice from someone familiar with the PHL & US Tax Codes. (I have an accountant here in the PHL who helps me with my local taxes).

Edited March 18, 2015 by manilaraf