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Recently I got an offer for work from a U.S. company as an independent contractor, and in the contract it says "All amounts payable pursuant to this agreement are exclusive of taxes." I am quite unsure about what this actually means. Does this mean the company will pay the tax and will not cut it from the amount offered? or do I have to pay the tax myself from my compensation in which the company agreed to provide?

I will be working outside the U.S., in Dubai.

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    Where is the job, and where are you? – keshlam Mar 13 '16 at 0:39
  • @keshlam the job offer is from US – Jondi Mar 13 '16 at 0:40
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    I read it to mean, the number offered is gross, you are responsible for your taxes. – JTP - Apologise to Monica Mar 13 '16 at 0:43
  • "Exclusive of taxes" - What an odd way to say it. In the U.S., I'm sure the salary number they are giving you is before taxes, but the words they chose are ambiguous, if not wrong. – Ben Miller - Reinstate Monica Mar 13 '16 at 1:54
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    Are you doing the work inside the U.S., or outside? Are you going to be an employee for this company, or a contractor? If you are a contractor, then essentially, you are your own employer (self-employed). – Ben Miller - Reinstate Monica Mar 13 '16 at 12:19
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Since you are an independent contractor, the company you are doing this job for will not be paying or withholding any tax. It is your responsibility to pay any taxes that are due.

Unless you are a U.S. Citizen, if you are not living in the U.S. when you perform this work, you won't have any tax liability for the U.S. But you will need to make sure that any tax due to the U.A.E. or whatever country you are a citizen of is paid.

  • Excellent Ben, that clarified by doubt. I apologize for bad english. – Jondi Mar 13 '16 at 13:32
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In the US, it would be almost certain that they are quoting the gross pay before income taxes have been subtracted out.

But the phrase they have used is ambiguous, so no matter where this is, I think the only way to be sure is to ask them.

  • Hi, how could it be a remote position job. Like an offer from US and the employer is going to work for them remotely from another country like Dubai?. How does this Tax statement apply then? – Jondi Mar 13 '16 at 10:44
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It can be interpreted to mean several things at once:

  • That number is your gross pay before taxes.

  • They will not be responsible for withholding taxes.

  • You will have to pay for taxes on your own from that amount.

You may have additional information that makes clear the correct interpretation, but best to ask.

  • Hi, how could it be a remote position job. Like an offer from US and the employer is going to work for them remotely from another country like Dubai?. How does this Tax statement apply then? – Jondi Mar 13 '16 at 10:44

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