[asterisk-biz] OT: Paying people in faraway (Western) places.

[SIP]

Technically, the taxes are only on money made from US source funds
(stocks, leftover money-market accounts, etc)... but there's a tricky
bit.  During that 10 years, if you are ever in the US for more than 30
days (total), you're considered a resident again for taxation purposes,
and the US will demand full payment of tax from ANY income you make
worldwide that year.

Which is insane. But again, VERY typical of the US' taxation policies.

The US considers these long-term residents who leave 'expatriates' of
the US. I'm not sure any rational-thinking H1 visa holder would consider
himself such (nor would any company that's ever had to jump through the
ridiculous hoops requires to hire one).

N.


Dean Collins wrote:
> While on this contentious issue.....
>
> For anyone running a USA based corporation that have staff employed
> using green cards or H1 visas etc then you should expect a lot of them
> to begin to leave in about 4-5 years from now before the implementation
> of the HEART Taxation Act in 7 years from now.
>
> If you haven't heard about this yet, this tax code change was swept in
> under the guise of 'giving more money to returning troops'.
>
> But what it basically means is anyone living in the USA for more than 8
> years has to continue pay tax in the USA for 10 years after they
> leave!!!!!
>
> LOL.
>
> So 18 years from now I could still be paying tax to the USA government
> even though I leave the country in 2014.
>
> This is going to be a major blow to the IT industry in the USA and a big
> problem trying to attract staff.
>
> I was at a conference last year where this was being discussed and half
> the people affected in the room had never heard about it let alone begun
> to think through the consequences.
>
>
> http://deancollinsblog.blogspot.com/2008/10/heart-taxation-act-drives-aw
> ay-green.html
>
>
>
>
>
> Regards,
>
> Dean Collins
> Cognation Inc
> dean at cognation.net
> +1-212-203-4357   New York
> +61-2-9016-5642   (Sydney in-dial).
> +44-20-3129-6001 (London in-dial).
>
>
>   
>> -----Original Message-----
>> From: asterisk-biz-bounces at lists.digium.com [mailto:asterisk-biz-
>> bounces at lists.digium.com] On Behalf Of SIP
>> Sent: Thursday, 8 January 2009 10:43 AM
>> To: Commercial and Business-Oriented Asterisk Discussion
>> Subject: Re: [asterisk-biz] OT: Paying people in faraway (Western)
>>     
> places.
>   
>> Alex Balashov wrote:
>>     
>>> You mean, someone working outside the country still has to have
>>>       
> taxes
>   
>>> withheld on their behalf as though they lived in Canada, but
>>>       
> eventually
>   
>>> the withheld amount is recovered?  What do the employees have to do
>>>       
> on
>   
>>> their side?
>>>
>>> In this case I am more interested in the interactions with UK law
>>>       
> than
>   
>>> anything else.  My understanding of US law suggests pretty clearly
>>>       
> that
>   
>>> I don't have to do anything on the US side for someone who is
>>>       
> neither a
>   
>>> US/territory resident nor a US citizen.  I hope my understanding is
>>>       
> correct.
>   
>>>       
>> Actually, that's not the case. The US wants whomever you pay to pay
>> taxes if it's a US corporation (or even a Foreign Controlled
>> Corporation). If you pay an employee, and that employee is a citizen
>>     
> of
>   
>> another country, never sets foot in the US, makes money on purely
>>     
> non-US
>   
>> clients, and gets paid in non-US currency, the IRS still requires that
>> person to file a tax return in the US (and requires you to file
>> appropriate paperwork).
>>
>> With us, we have a foreign controlled corporation in the Bahamas. Half
>> the owners of the corporation are non-US residents/citizens (living
>> outside the US). The IRS still requires them to pay taxes.
>>
>> It's a laughable system, but that's the IRS for you.
>>
>> N.
>>
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