I am a resident of Brazil and recently did a job for a Spanish customer who paid me in the US. I would like to know if I should pay tax on this job, and how I should do that. I do not have a social security number or anything in the US, as I am a non-resident. Any ideas on that?

  • 2
    Pay tax in what jurisdiction? You certainly need to pay tax somewhere. Are you asking about paying US taxes? You say "paid in US" you mean US currency, or you mean you physically were in the US when the customer handed you the check? – Joe Jun 26 '17 at 14:43
  • It was paid in the US, in a bank account I have there. I plan to issue an invoice in Brazil after the service is completed this week. Do you believe that would be enough? – Mark A. Jun 26 '17 at 14:46
  • You'd just pay taxes in Brazil, to Brazil as normal. (Sadly!) Where or how you were literally "paid" (ie, "how the cheques worked") is (unfortunately) totally irrelevant and indeed unlikely you'd even mention it or enter it in a form anywhere. It would just be part of your income "I made X". Regarding the USA, it has nothing to do with them, you're just using a bank there. – Fattie Jun 26 '17 at 15:01
  • Thank you very much for your assistance! Was a little worried! Will proceed as if paid in BR! – Mark A. Jun 26 '17 at 15:16
  • @Fattie That sounds like an answer... – Joe Jun 26 '17 at 15:35

resident of Brazil and recently did a job for a Spanish customer

As the service is rendered from Brazil, the tax would be accrued in Brazil. Depending on how your contract was structured, there maybe an element of tax in Spain. However that should be the look out of your Spanish Customer and not you.

who paid me in the US.

From a tax point of view, it is generally irrelevant where the payment is made as long as it is convenience; i.e. the payment could also equally have been received in Brazil. Thus there is no tax liability for this in the US.

Note this is different from requirements of operating a Bank Account in US. You may still be liable to questions with respect to your Bank Account in US by US authorities if it is missing adequate documentation. The IRS may treat this as income deemed received in US if there lack of adequate documentation to establish that the income was NON-US

  • It is irrelevant to whether the OP owes taxes to the US, but it is not irrelevant to whether the IRS will suspect that taxes are owed. The IRS may hassle the OP if they can't show that the income was not US-related. – Acccumulation Apr 23 '18 at 15:22
  • @Acccumulation Agreed. Edited to clarify. – Dheer Apr 24 '18 at 8:17

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