Found an issue on this page? Let us know and we will look into it as soon as possible.
Foreign citizen living Outside US, tax on salary
Anonymous5 views3 answers
I am a citizen of India, living and working outside the US. I work remotely for a US company as a contractor. The employer wants me to fill some tax document so that they can process my salary through payroll. I am thinking of w-8BEN.
Would that make me exempt from US taxes?
You should work with the employer to obtain the correct tax documents and fill them in, this is their responsibility to get right, not yours. As to specific tax advice, it depends on the nature of the work. Generally, work performed outside the US by a non-resident would not be taxable, but there are always details which can change the analysis. A CPA or tax attorney would be necessary in that case.
The W-8BEN form is used to certify that you are a foreign person not subject to US withholding or subject to a lower tax rate as the result of a tax treaty. If you fill out the form, then the employer will not withhold any taxes or will withhold at the reduced rate. If you don't fill out the form, then the employer will withhold 30%, give it to the IRS and you will have to file a tax return requesting a refund.
You should speak with someone who is able to read and advise based on the US-India tax treaty.
