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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.
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.
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.
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.
