3 must-know tips for international tax planning. Source: pexels.com
Working overseas comes with its own set of challenges and problems – there’s the whole deal about moving to a whole new country and getting used to the culture and the rules. And then there’s the work and finance side of things.
Moving to a new country and starting work there is hard whether you’re an individual or a corporation, but there are things you can do to prepare. First and foremost, you need to educate yourself on a lot of things money-wise. Are electronic payments the norm there, or are you going to need to carry cash? What is the banking system like, and what are the tax rules like?
A lot of people don’t realize that doing business with another country means you’re probably liable for some tax there, even if you’re paying taxes where you are. In the same way, you might still have tax liability towards your home country if you’re working in another.
Don’t worry if it all seems too much – this article contains tips that can help you begin to figure out the tangled mess that is international tax laws.
Talk to an expert
If international tax laws weren’t hard to understand before, they sure are now. With the pandemic nearly becoming the new normal for a lot of people, remote work is on the rise and the job market for a lot of sectors has become more or less global.
This change is going to bring a lot of changes in the global tax market, and a lot of countries are already introducing these changes. When getting your taxes wrong can come at steep costs to you (especially in the US) and the rules are constantly changing, it can be a good idea to talk to an expert who can help you out!
Read up on local tax laws
Imagine you’re moving to Spain. Now, there are a lot of things about the tax system in the EU that you’ll need to brush up on, and a lot of how much taxes you’ll need to give is going to depend on what type of visa you have and what you’re doing in the country. You can brush up on types of visas and other information through a Spanish non lucrative visa guide on Where Can I Live, and you can then go on to read up on taxation laws for different kinds of professions and where you fall into it all.
The same will apply to anywhere else you decide to move to – you’ll need to look into the kind of residence arrangement you have with the country, and then look into what laws and rules apply to you from there. If you’re willing to put in the work, you might be able to handle your taxes yourself, and your employer might probably be able to help.
Source: pexels.com
Keep tax treaties in mind
A lot of countries have tax treaties with one another, and if your country has a tax treaty with the one you’re doing business with or working in, you might be liable to pay less tax than you’re paying. In any case, these treaties will have a direct impact on your international taxes, which is why it’s smart to know about them.
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