Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


dzh



30 posts

Geek

Trusted

Topic # 205521 16-Nov-2016 16:08
Send private message

What are the requirements if you want to do work for foreign companies?

 

I am currently working locally, but might get some remote work eventually. That would make me more location independent.

 

 

 

My understanding opening sole trader would be enough.

 

Then just pay the taxes just as you'd get business locally?

 

 

 

p.s. Is there any requirements to be a resident? I am currently here on a work visa.

 

Soon 2 year term will complete and I'll be able to continue on my own and after 2 years of tax residence, gain permanent residence.

 

But wondering what is the requirement for the time being? 


Create new topic
2476 posts

Uber Geek
+1 received by user: 738

Trusted
Lifetime subscriber

  Reply # 1672208 16-Nov-2016 16:29
Send private message

I would play this safe, and:
- divert 30% of your international earnings into a separate tax account unless a professional accountant tells you otherwise
- get professional accounting advice early

 

The vast majority of accountants will have a free chat with you.





"4 wheels move the body.  2 wheels move the soul."

“Don't believe anything you read on the net. Except this. Well, including this, I suppose.” Douglas Adams

mdf

2119 posts

Uber Geek
+1 received by user: 642

Trusted
Subscriber

  Reply # 1672213 16-Nov-2016 16:37
Send private message

New Zealand taxes you on your world wide income. If you were going down the sole trader route (and there are pros and cons to that vs incorporating a company) you'd need to declare overseas income on your annual IR3 form which would then be taxed at your marginal tax rate. If you do enough of this, you will also be up for (the much loathed) provisional tax.

 

Depending on what you do and how much you invoice, you may also have to register for GST. Depending on what you do, the "export" of services is usually zero-rated though.

 

But then overseas companies may have different rules about income and sales tax. Which is then compounded by double tax agreements. And I don't know what work visas do to this either.

 

So basically what @Dynamic said. Talk to an accountant.


 
 
 
 


3975 posts

Uber Geek
+1 received by user: 1327


  Reply # 1672292 16-Nov-2016 18:41
Send private message

Dynamic:

 

I would play this safe, and:
- divert 30% of your international earnings into a separate tax account unless a professional accountant tells you otherwise
- get professional accounting advice early

 

The vast majority of accountants will have a free chat with you.

 

 

 

 

Save more than 30% in tax, our tax rate is 33%.  

 

Unless you have a presence in the other country i doubt they will tax you. Especially so if there is a double tax agreement in place. 

 

You won't need to collect gst but you can claim GST on expenses. 

 

 


dzh



30 posts

Geek

Trusted

  Reply # 1879363 8-Oct-2017 13:20
Send private message

surfisup1000:

 

Dynamic:

 

I would play this safe, and:
- divert 30% of your international earnings into a separate tax account unless a professional accountant tells you otherwise
- get professional accounting advice early

 

The vast majority of accountants will have a free chat with you.

 

 

 

 

Save more than 30% in tax, our tax rate is 33%.  

 

Unless you have a presence in the other country i doubt they will tax you. Especially so if there is a double tax agreement in place. 

 

You won't need to collect gst but you can claim GST on expenses. 

 

 

 

 

Well, my employer/client is based in US. I've recently got residency (came from Europe on talent/work visa).

 

To keep my residency status I need to either live here 180 days or be a 'tax resident' for 41 days.

 

This is where things get really murky. You need to setup NZ as a permanent abode. Most explanations focus on owning property and people actually living abroad.

 

There's no way I can afford any property here and ideally I'd only stay here for 41 days, than 180.

 

How do I get to know whether I'd be considered a tax resident? In most cases people seem to try avoid that :D


2523 posts

Uber Geek
+1 received by user: 970

Lifetime subscriber

  Reply # 1879399 8-Oct-2017 14:25
Send private message

Aside from being exempt GST, there's nothing special about overseas income. Just treat it the same as your NZ contracting income whether you are a sole trader or a company.

 

IOW estimate your annual profit after expenses and put aside a tax provision.

 

To me the biggest issue is getting paid. How well do you trust the client? I'd be careful about payment terms, and not accruing to much of a current AR asset with them in case they turn out bad.

 

 


Create new topic



Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.


Support Geekzone »

Our community of supporters help make Geekzone possible. Click the button below to join them.

Support Geezone on PressPatron



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.