What other taxes?
Thread poster: Iulia Cosma

Iulia Cosma  Identity Verified
Romania
Local time: 19:10
English to Romanian
+ ...
Sep 18, 2008

Hello.
Could anyone help me understand what this sentence means? "I am responsible for filing all taxes for all income that I make from company X in my own country".
I am not a VAT payer and the company I'm interested in, is in the USA: what taxes (exactly) do I have to pay?
Forgive my ignorance but I only know about the tax on the income (16% here), the health and social insurance (I am not sure about their names in English).
Thank you in advance.


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KSL Berlin  Identity Verified
Portugal
Local time: 17:10
Member (2003)
German to English
+ ...
You are responsible for your Romanian taxes Sep 18, 2008

It means that you are fully responsible for any taxes which may apply to your revenues from work with that company. The company is not responsible for withholding taxes or anything else. If you report your income and pay the appropriate taxes, you have nothing to worry about; by asking you to acknowledge this responsibility, the US company seeks to be released from any liability which may be declared by the authorities in your country. Whether this is technically possible under the domestic laws of every country on this planet I do not know, but it's pretty standard stuff, and I wouldn't be afraid to sign a contract which made this statement. If you are concerned that the laws of Romania may place you in some jeopardy here, consult a local attorney.

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Iulia Cosma  Identity Verified
Romania
Local time: 19:10
English to Romanian
+ ...
TOPIC STARTER
Nothing to worry about, then Sep 22, 2008

I do pay all my taxes, so there should be nothing else.
Thank you, Kevin; you've been helpful as always!


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Alexandra Goldburt
Local time: 09:10
English to Russian
+ ...
Is it from a contract with a US company? Sep 22, 2008

If so, nothing to worry about.

In the US, it means federal and state income tax and social security tax. But it doesn't apply to you, so don't worry.

The reason American companies have all their free-lances sign this is to prove that they are indeed free-lancers, and not employees. If they were employees, the company would be obligated to pay one half of their social security tax, plus disability insurance, plus workers compensation insurance, not to mention vacation and holiday pay, very possible medical insurance and sick days, etc. In other word, the company is trying to protect itself legally.

Nothing you should worry about.


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