Taxation on freelancers residing in foreign countries
Thread poster: Ibrahim Nassef

Ibrahim Nassef  Identity Verified
Local time: 09:15
English to Arabic
+ ...
May 20, 2008

Hi everybody,

I am about to establish a translation office in the US. I need to know the general tax regulations concerning payments made to freelancers worldwide. Does anybody have some hints in this regard? Are there special forums dealing with similar questions?

Thanks,

Ibrahim


 

Daina Jauntirans  Identity Verified
Local time: 08:15
German to English
+ ...
More details? May 20, 2008

Are you going to be a sole proprietor or incorporated company? I have a company incorporated in the US (S-corp) and very occasionally pay freelancers in other countries. My freelancers are not US citizens and do not do business in the US, so I need to have a W-8BEN form on file for each of them. No tax is withheld from the payment. I send the money via wire transfer through my bank. The amount I pay out is then included as an expense for the business in that year's tax return.

Definitely contact an accountant, though, for more information about your specific situation. It's worth the money in my opinion.


 

Ibrahim Nassef  Identity Verified
Local time: 09:15
English to Arabic
+ ...
TOPIC STARTER
Thank you very much. May 21, 2008

I think I will choose the LLC form for it's simplicity. I will of course consult an accountant. I just wanted to know the basics. Thanks a lot!

 


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