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I live outside the States, I'm not American and I'm going to be paid by an American company on my personal American bank account: it's headed to me, as a physical person.

I'm obviously going to pay my national taxes when I'll transfer the money in my country..but the money I'll earn are going to be taxed by the US?

  • Why do you have or need a US bank account? – JoeTaxpayer Jan 7 '14 at 20:49
  • @JoeTaxpayer I have an American bank account because I previously worked in the States with a VISA, some years ago. – Luke Jan 7 '14 at 20:53
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    Is there any reason that you can't be paid directly, in your country? It seems the US account isn't really part of this, and may confuse our IRS. – JoeTaxpayer Jan 7 '14 at 21:22
  • @JoeTaxpayer The company that will pay me only accept paypal and wire transfers to US bank accounts. Honestly I don't know why, but I already have a bank account so I was wondering about using that. I'm not a US citizien and I'm not employed there, would be a mess if I'll get paid on a US account? – Luke Jan 7 '14 at 21:35
  • I'm commenting, not 'answering' because I admit this is above me. I think my concern is valid, better safe than sorry. Not a citizen and not in US you should have no tax due, but something about accepting payments and then exporting the money seems a risk. – JoeTaxpayer Jan 7 '14 at 21:59
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I agree with Joe, having the money deposited to the US bank account may land you in trouble. Technically, a US business paying a foreigner must withhold 30% of the payment, unless a tax treaty says otherwise. The US business should do that based on your W8-BEN/W8-ECI form that you should have given to the business before being paid.

I'm guessing, that by paying to your US bank account, you (and your American counterpart) are trying to avoid this withholding. That may cause trouble for both of you. I would suggest you talking to a professional (EA/CPA licensed in the State where the business is located) and having the situation resolved ASAP.

You may not be liable for the US taxes at all, but because of incorrectly reporting the income/expense - you and the US business may end up paying way more than the $0 you otherwise would have, in penalties.

3

Technically, if you earn in US (being paid there, which means you have a work visa) and live in other country, you must pay taxes in both countries.

International treaties try to decrease the double-taxation, and in this case, you may pay in your country the difference of what you have paid in US. ie. your Country is 20% and USA is 15%, you will pay 5%, and vice-versa. This works only with certain areas. You must know the tax legislation of both countries, and I recommend you seek for advisory.

This site have all the basic information you need:

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Earned-Income-Exclusion

Good luck.

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protected by Chris W. Rea Jan 16 '17 at 1:12

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