What are the tax implications of remote work across borders?.

Remote work can complicate tax obligations, particularly for individuals working in one country while residing in another. Key considerations include:

Key Facts

• Residency rules: Tax residency is often based on the number of days spent in a country, typically 183 days.
• Double taxation treaties (DTT): Many countries have DTTs to prevent being taxed on the same income in both countries.
• Employer obligations: Companies may need to register for payroll taxes in the employee's country of residence.
• Self-assessment: Remote workers often must self-report income and pay taxes in their home country.

Examples or Use Cases

• A software developer based in Canada working for a U.S. company may owe taxes in both nations but can benefit from a DTT.

FAQs

• Do I need to pay taxes in both countries? Yes, but DTTs can help mitigate this.
• What if my employer is in a different country? Your tax responsibilities may change based on where you reside and where your employer is located.