I'm a Swiss citizen living in Paraguay, but my source of income is mainly in the US, because I work remotely. USA and Paraguay have no treaty to avoid double taxation, so does that mean that I have to pay taxes in the US due to the source of income being there and then also in Paraguay because I'm working here?
I can't see how double taxation could be avoided in this case.
The source of your income is totally irrelevant.
In this example, you would not in any way be involved with the US authorities.
Your only question is paying Paraguay and/or Swiss taxes.
Enjoy!
You've now asked about the separate issue of withholding:
Yes OF COURSE the US company, will, generally, WITHHOLD taxes on the payments.
There's a form you must fill in to prevent that.
You must do that - it's an basic of any company/person working with US companies.
Good luck!
I suggest if you have detailed questions about "avoiding withholding on payments coming from the states", that is a separate topic. (And indeed you'll find many QA about the issue, on here.)
