Overseas independent contractor

[JosioDiaz]

If I don't perform any work on US soil but I work independently remote for a company based in the US do I have to pay US taxes?

[rjs]

If you are a U.S. citizen or resident alien you have to pay U.S. tax on all your worldwide income, no matter where you work or where the income is from. You might qualify for the foreign earned income exclusion, which would reduce or eliminate the U.S. tax on your foreign income, but you still have to file a U.S. tax return.

[JosioDiaz]

I am not a US citizen or resident alien. Does this change anything?

[rjs · Accepted solution]

@JosioDiaz 

What exactly does working "independently" mean. Are you a self-employed contractor to the U.S. company, or do they treat you as an employee? Do they send you a Form W-2?

What state is the U.S. company located in?

Note that you could be a resident alien even if you do not reside in the U.S. If you have a U.S. "green card" you are a resident alien.

@pk  Nonresident alien working overseas, but working remotely for a U.S. company. Subject to U.S. tax?

[JosioDiaz]

Let's say is a  sales job, selling products or services for different companies and the person gets paid by commission. It's not a salary, he/she just gets paid every time they sell something. That's what I mean by independent remote. The work would consist of making calls to sell products/services.

The person is not a US citizen or a Resident alien. Is that person subject to US taxation? And the deals would be close while the person is not on US soil.

[pk]

@JosioDiaz  having read your original post, @rjs pertinent questions and comments and your repose thereto, I would like to add  that 

(A) US taxes persons based on  (1) citizenship ( US citizens are taxed  on world income no matter where they live or earn );  (2) all residents  whom live on US soil ( world income again -- there are exceptions ); (3) Rest of the world (RoW) on US sourced/connected income.  It is an extremely broad taxation reach.

(B) US also uses , probably because of domestic reasons, the principle of  "income sourced to where work performed". 

In your case  ( assuming that  you are currently not a resident for tax purposes ) because  you are performing the work abroad ( for a US based entity which you do not significantly own/control ), the income is neither US sourced or US connected.   Thus US should have no Tax interest.

What I find interesting is why the question? What is the reason behind this ?  Please tell more about the situation-- please 

Does this make sense?

pk

[JosioDiaz]

We could definitely connect so I could tell you more about it. The tax world id a complicated one and I am not the best at it. Send me an email at [email address removed] and we can talk more about it.

Thanks

[pk]

This being a public board, your email address has been removed .  You can send a PM and tell me more about the situation and also which country.

pk