Being a free lancer and paying taxes
Thread poster: Katja Vuorisalo
Katja Vuorisalo
Katja Vuorisalo  Identity Verified
Finland
Local time: 16:20
French to Finnish
+ ...
Aug 9, 2005

Hi!
Can you give me advice about how it is being a free lancer abroad, do you pay taxes to the country you are living in or to your own home country? How does it go in practice e.g. in France, is there a lot of bureaucratic work before you can start as a free lancer? Thanks in advance!


 
Gerard de Noord
Gerard de Noord  Identity Verified
France
Local time: 15:20
Member (2003)
English to Dutch
+ ...
Sorry Ralph! Aug 9, 2005

katerina100 wrote:

Hi!
Can you give me advice about how it is being a free lancer abroad, do you pay taxes to the country you are living in or to your own home country? How does it go in practice e.g. in France, is there a lot of bureaucratic work before you can start as a free lancer? Thanks in advance!


Hi Katerina?

I hate to sound like Ralph, but you should at least tell us where you're from and where you plan to stay.

Regards,
Gerard


 
sarahl (X)
sarahl (X)
Local time: 06:20
English to French
+ ...
I second that! Aug 9, 2005

Let me be Ralph #3:

1. what's your citizenship
2. what's your country of residence?


 
#41698 (LSF)
#41698 (LSF)
Malaysia
Local time: 21:20
Japanese to English
+ ...
Generally Aug 10, 2005

Generally,
- You pay tax in the country you live (unless you cross the borders daily in which case you may have to pay taxes in the country in which you are drawing a salary).
- You pay tax for income remitted to your home country subject to deductions under Double-Taxation Agreements (countries with exemptions exist).
- You have to charge VAT if your annual takings exceed a certain amount and you reside or have main business in VAT-levying countries.

Exceptions:... See more
Generally,
- You pay tax in the country you live (unless you cross the borders daily in which case you may have to pay taxes in the country in which you are drawing a salary).
- You pay tax for income remitted to your home country subject to deductions under Double-Taxation Agreements (countries with exemptions exist).
- You have to charge VAT if your annual takings exceed a certain amount and you reside or have main business in VAT-levying countries.

Exceptions:
- US authorities tax their citizens no matter where they live but subject to deductions.
- Certain social security payment in home country (such as Japan) may still be payable (possible to have bilateral agreements/recognition).
- Countries that exempt foreign-sourced income on a personal level do exist.
Collapse


 
Samuel Murray
Samuel Murray  Identity Verified
Netherlands
Local time: 15:20
Member (2006)
English to Afrikaans
+ ...
It depends on your two countries, really Aug 10, 2005

katerina100 wrote:
Can you give me advice about how it is being a free lancer abroad, do you pay taxes to the country you are living in or to your own home country?


It really depends on the country, and whether the two countries' tax systems recognise each other (if they don't, you might end up paying tax twice).

Thinking not legally but morally, I'd say that you ought to pay tax in the country where you have resident status. Ethically speaking you should also declare your foreign income to your local tax authority.

Other than that, you'd have to be specific.


 
Katja Vuorisalo
Katja Vuorisalo  Identity Verified
Finland
Local time: 16:20
French to Finnish
+ ...
TOPIC STARTER
citizenship Aug 10, 2005

sarahl wrote:

Let me be Ralph #3:

1. what's your citizenship
2. what's your country of residence?





1. I am Finnish
2. My country of residence at the moment is Finland, but I'm planning of moving e.g. to France, Switzerland...So I was wondering if I pay taxes to the country of whose citizen I am, to the country of residence, or even both?! I'm sure this was discussed lots of times already, but I'm new on this business, so..thanks!


 
Natalia Elo
Natalia Elo  Identity Verified
Germany
Local time: 15:20
English to Russian
+ ...
Aug 10, 2005



[Edited at 2005-08-10 08:20]


 
Natalia Elo
Natalia Elo  Identity Verified
Germany
Local time: 15:20
English to Russian
+ ...
Dear Ralph, sorry:) Aug 10, 2005

katerina100 wrote:

Hi!
Can you give me advice about how it is being a free lancer abroad, do you pay taxes to the country you are living in or to your own home country? How does it go in practice e.g. in France, is there a lot of bureaucratic work before you can start as a free lancer? Thanks in advance!


Hi katerina100,


A suggestion if I may. What don't you try to search Forums or Knowledge base, for example this article.


Natalia


 
Katja Vuorisalo
Katja Vuorisalo  Identity Verified
Finland
Local time: 16:20
French to Finnish
+ ...
TOPIC STARTER
citizenship Aug 10, 2005

Hi, thanks fo reply.

1. I'm Finnish.
2. My country of residence at the moment is Finland, but I'm considering of moving e.g. to France, Switzerland...I was wondering if I have to pay tax to the country whose citizen I am, to the country of residence or even both? Thanks for advice, I will look for previous comments on this subject!


 
sarahl (X)
sarahl (X)
Local time: 06:20
English to French
+ ...
Partial reply Aug 10, 2005

Based on the information you gave us.

If you live and work in France, then you have to report your income to the tax authority there.

As for your home country, I am not sure, that varies with the country.

HTH

Sarah


 
Natalia Elo
Natalia Elo  Identity Verified
Germany
Local time: 15:20
English to Russian
+ ...
Finnish tax authorities Aug 10, 2005

katerina100 wrote:

1. I am Finnish
2. My country of residence at the moment is Finland, but I'm planning of moving e.g. to France, Switzerland...So I was wondering if I pay taxes to the country of whose citizen I am, to the country of residence, or even both?! I'm sure this was discussed lots of times already, but I'm new on this business, so..thanks!


One of my citizenships is also Finnish and I moved from Finland to Germany not so long time ago.

You will be getting your verokortti for couple of more years and if you get some income from Finland the will take taxes from that. You can however apply for tax exemption if you are planning to live in the new country of residence. There is a special form for that on the webpage of Finnish Tax Administration (Verohallinto) www.vero.fi A lot of things explained there as well. They have Internatonal Department, where I called before moving.

Natalia


 


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Being a free lancer and paying taxes







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