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One UK tech company is offering me to work for them (ie. be on their UK payroll). I am citizen of Estonia.

Since, in this job I will travel every 3 or so months between different countries (as in France, New Zealand, USA), then where do I have to pay income tax?

I don't own or rent any property neither in my home country nor UK. I also will not spend more than a month in either of the countries per year.

  • 2
    I'm confused. How can you "travel every 3 months between different countries," yet "not spend more than a month in either of the countries per year"? – Ben Miller Feb 21 '16 at 12:35
  • @BenMiller I updated the question so that it would be clear what I meant with "different countries". – john1234 Feb 21 '16 at 18:58
  • @DanGetz Some countries (e.g. France) will be in the EU and some (New Zealand, USA) won't. Roughly it will be <6 months in the EU. – john1234 Feb 21 '16 at 18:59
  • For the USA segment, what type of visa / work permit will you have (if any)? – user32479 Feb 22 '16 at 5:28
  • @Brick About 2 months in the USA on B1 visa (which is almost like ESTA). – john1234 Feb 23 '16 at 23:13
2

It depends on different factors but what I would invite you to read is the following document in order to better see where you would sit.

How it usually works in Europe:

  • You pay taxes where your residence is, and,
  • You pay taxes where you earn money.

What countries of Europe have put in place is something that enables you to not pay the same tax twice (home country and where you're earning money). The best is that you contact UK HMRC and your Estonian tax government. The other countries in which you will go, will not count because you will be on their UK payroll. The company for which you will work will manage to charge your services in those other countries and will pay taxes there, you don't have to worry about it.

Some useful links:

Well sorry not enough reputation to put more useful links. But the website of HMRC is really well documented, you should Google for "Non-Resident Taxes" and "Foreign Income" on your local government and for the UK one.

  • (-1) That might be true of the UK but that's not correct in general. – Relaxed Jun 9 '16 at 7:08
  • @Relaxed your comment is not really constructive... I'm was not talking in general but in his case (a European one). Now if you think that's not correct, please elaborate on your thoughts. – rels Jun 9 '16 at 7:14
  • Sorry if I wasn't clear, my point is precisely that income taxes are not harmonized, even at the EU level (it's actually remarkable how little has been done in this area compared to many other things like retirement pensions, health insurance, VAT, etc.) European countries haven't put anything in place, you can't assume that things will usually work this or that way, you should not expect that there is a tax treaty between any two EU member states, you can't say that "other countries [...] will not count”, etc. – Relaxed Jun 9 '16 at 7:44
  • I do agree with you. The thing is that in his case he will be under the UK payroll, therefore the only thing is has to worry about is how taxes are managed between Estonia and UK. His company will "normally" pay the appropriate taxes in the countries where he will be in mission and doesn't have to worry about it. Don't agree with that? – rels Jun 10 '16 at 8:13
  • Given the nature of the position, I would generally expect the company to assist/take care of it, just as they might help with the UK taxes actually. I don't think there is any need to worry about Estonia at all, unless the OP could be considered a resident there. But your answer make it sound as if there are some general rules in place to avoid double taxation and make this simple. That's not the case. Someone (either the OP or their employer) has to worry about potential tax implications in France, etc. Not necessarily a big disagreement but I think you should be slightly more careful. – Relaxed Jun 10 '16 at 8:21

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