~OT: Kiwis contracting to the US

Discussion in 'NZ Computing' started by gimp, May 15, 2005.

  1. gimp

    gimp Guest

    oddball question here - i crossposted this to nz.comp thinking maybe
    there are some IT people who have experience with this.

    does anybody know what the taxation laws are regarding freelancing to
    the US from NZ (ie, working from here in NZ, but the work is being paid
    for on a per-project basis by US companies).

    i know that as long as i was working here and not operating from the US,
    as a contrator I'm exempt from paying tax to the IRS - but do i still
    need an individual taxpayer identification number? (ITIN) or have to
    file anything..?
     
    gimp, May 15, 2005
    #1
    1. Advertising

  2. gimp

    Tarla Guest

    gimp wrote:
    > oddball question here - i crossposted this to nz.comp thinking maybe
    > there are some IT people who have experience with this.
    >
    > does anybody know what the taxation laws are regarding freelancing to
    > the US from NZ (ie, working from here in NZ, but the work is being paid
    > for on a per-project basis by US companies).
    >
    > i know that as long as i was working here and not operating from the US,
    > as a contrator I'm exempt from paying tax to the IRS - but do i still
    > need an individual taxpayer identification number? (ITIN) or have to
    > file anything..?


    What's your nationality?
     
    Tarla, May 15, 2005
    #2
    1. Advertising

  3. gimp

    gimp Guest

    Tarla wrote:
    > gimp wrote:
    >
    >> oddball question here - i crossposted this to nz.comp thinking maybe
    >> there are some IT people who have experience with this.
    >>
    >> does anybody know what the taxation laws are regarding freelancing to
    >> the US from NZ (ie, working from here in NZ, but the work is being paid
    >> for on a per-project basis by US companies).
    >>
    >> i know that as long as i was working here and not operating from the
    >> US, as a contrator I'm exempt from paying tax to the IRS - but do i
    >> still need an individual taxpayer identification number? (ITIN) or
    >> have to file anything..?

    >
    >
    > What's your nationality?


    oops, left that out.. born a kiwi :)
     
    gimp, May 15, 2005
    #3
  4. gimp

    Tarla Guest

    gimp wrote:
    > Tarla wrote:
    >
    >> gimp wrote:
    >>
    >>> oddball question here - i crossposted this to nz.comp thinking maybe
    >>> there are some IT people who have experience with this.
    >>>
    >>> does anybody know what the taxation laws are regarding freelancing to
    >>> the US from NZ (ie, working from here in NZ, but the work is being paid
    >>> for on a per-project basis by US companies).
    >>>
    >>> i know that as long as i was working here and not operating from the
    >>> US, as a contrator I'm exempt from paying tax to the IRS - but do i
    >>> still need an individual taxpayer identification number? (ITIN) or
    >>> have to file anything..?

    >>
    >>
    >>
    >> What's your nationality?

    >
    >
    > oops, left that out.. born a kiwi :)


    If you're living here, and and not resident in the US at all, you only
    pay NZ taxes, and you don't need a tax number because you won't be
    paying into the Social Security System.
     
    Tarla, May 15, 2005
    #4
  5. gimp

    gimp Guest

    Tarla wrote:
    > If you're living here, and and not resident in the US at all, you only
    > pay NZ taxes, and you don't need a tax number because you won't be
    > paying into the Social Security System.


    thanks for the info :)
     
    gimp, May 15, 2005
    #5
  6. gimp

    EMB Guest

    gimp wrote:
    > Tarla wrote:
    >
    >> If you're living here, and and not resident in the US at all, you only
    >> pay NZ taxes, and you don't need a tax number because you won't be
    >> paying into the Social Security System.

    >
    >
    > thanks for the info :)


    AIUI if you're going to earn over the threshold for GST registration you
    will need register even though your services will be GST exempt
    (provided outside NZ). You'll just have to make an adjustment for zero
    rated supplies on each return. I'd suggest you either contact IRD or a
    good accountant to clarify this.

    --
    EMB
     
    EMB, May 16, 2005
    #6
  7. gimp

    gimp Guest

    EMB wrote:
    > AIUI if you're going to earn over the threshold for GST registration

    you
    > will need register even though your services will be GST exempt
    > (provided outside NZ). You'll just have to make an adjustment for zero
    > rated supplies on each return. I'd suggest you either contact IRD or a
    > good accountant to clarify this.



    yep i'm already registered for gst :)
     
    gimp, May 16, 2005
    #7
  8. gimp

    Ron McNulty Guest

    Yes, all your invoices to the USA go in the Zero Rated Supplies box, and you
    don't charge them GST. I have an opinion from a major accounting firm that
    confirms this (Technically you do charge them GST, but the rate is 0%)

    Regards

    Ron

    "EMB" <> wrote in message
    news:d68mt7$rln$...
    > gimp wrote:
    >> Tarla wrote:
    >>
    >>> If you're living here, and and not resident in the US at all, you only
    >>> pay NZ taxes, and you don't need a tax number because you won't be
    >>> paying into the Social Security System.

    >>
    >>
    >> thanks for the info :)

    >
    > AIUI if you're going to earn over the threshold for GST registration you
    > will need register even though your services will be GST exempt (provided
    > outside NZ). You'll just have to make an adjustment for zero rated
    > supplies on each return. I'd suggest you either contact IRD or a good
    > accountant to clarify this.
    >
    > --
    > EMB
     
    Ron McNulty, May 16, 2005
    #8
  9. gimp

    NZed Guest

    What if you lived in the Canary Islands ?
    Taxed ?
    NZed

    "Tarla" <> wrote in message
    news:...
    > gimp wrote:
    > > Tarla wrote:
    > >
    > >> gimp wrote:
    > >>
    > >>> oddball question here - i crossposted this to nz.comp thinking maybe
    > >>> there are some IT people who have experience with this.
    > >>>
    > >>> does anybody know what the taxation laws are regarding freelancing to
    > >>> the US from NZ (ie, working from here in NZ, but the work is being

    paid
    > >>> for on a per-project basis by US companies).
    > >>>
    > >>> i know that as long as i was working here and not operating from the
    > >>> US, as a contrator I'm exempt from paying tax to the IRS - but do i
    > >>> still need an individual taxpayer identification number? (ITIN) or
    > >>> have to file anything..?
    > >>
    > >>
    > >>
    > >> What's your nationality?

    > >
    > >
    > > oops, left that out.. born a kiwi :)

    >
    > If you're living here, and and not resident in the US at all, you only
    > pay NZ taxes, and you don't need a tax number because you won't be
    > paying into the Social Security System.
     
    NZed, May 21, 2005
    #9
  10. gimp

    Tarla Guest

    NZed wrote:
    > What if you lived in the Canary Islands ?
    > Taxed ?
    > NZed


    I have no idea. I thought the Canary Islands were a part of Spain.
     
    Tarla, May 21, 2005
    #10
  11. gimp

    Jason Rumney Guest

    Tarla <> writes:

    > NZed wrote:
    >> What if you lived in the Canary Islands ?
    >> Taxed ?

    >
    > I have no idea. I thought the Canary Islands were a part of Spain.


    They're a special economic zone, so no duty on imports, and no
    VAT. Companies in certain industries (including IT) get their company
    tax reduced to 1% - 5% (standard rate in Spain is 35%), as long as at
    least one director is resident and there are at least 5 employees. It
    is therefore a common tax haven for shell companies set up to launder
    IT contractors' earnings.
     
    Jason Rumney, May 21, 2005
    #11
  12. gimp

    PAM. Guest

    <jasonr (Jason Rumney) @ f2s.com> wrote in message
    > Tarla <> writes:


    > They're a special economic zone, so no duty on imports, and no
    > VAT. Companies in certain industries (including IT) get their company
    > tax reduced to 1% - 5% (standard rate in Spain is 35%), as long as at
    > least one director is resident and there are at least 5 employees. It
    > is therefore a common tax haven for shell companies set up to launder
    > IT contractors' earnings.


    Launder? Isn't it all above board and legal. Tax avoidance as opposed to tax
    evasion?

    PAM.
     
    PAM., May 22, 2005
    #12
  13. gimp

    Jason Rumney Guest

    "PAM." <> writes:

    > <jasonr (Jason Rumney) @ f2s.com> wrote in message
    >> Tarla <> writes:

    >
    >> They're a special economic zone, so no duty on imports, and no
    >> VAT. Companies in certain industries (including IT) get their company
    >> tax reduced to 1% - 5% (standard rate in Spain is 35%), as long as at
    >> least one director is resident and there are at least 5 employees. It
    >> is therefore a common tax haven for shell companies set up to launder
    >> IT contractors' earnings.

    >
    > Launder? Isn't it all above board and legal. Tax avoidance as opposed to tax
    > evasion?


    Its above board and legal if the money stays in the Canary Islands.
     
    Jason Rumney, May 22, 2005
    #13
    1. Advertising

Want to reply to this thread or ask your own question?

It takes just 2 minutes to sign up (and it's free!). Just click the sign up button to choose a username and then you can ask your own questions on the forum.
Similar Threads
  1. JaR

    [OT] Crazy Kiwis

    JaR, Aug 10, 2004, in forum: MCSE
    Replies:
    20
    Views:
    976
  2. =?Utf-8?B?dGhlIGowYmJ5?=

    contracting

    =?Utf-8?B?dGhlIGowYmJ5?=, Aug 25, 2005, in forum: MCSE
    Replies:
    49
    Views:
    1,468
    =?Utf-8?B?bGVhcGZyb2c=?=
    Aug 26, 2005
  3. Brian H¹©

    Any kiwis out there?

    Brian H¹©, Dec 12, 2003, in forum: Computer Support
    Replies:
    5
    Views:
    661
    Bluesky
    Dec 13, 2003
  4. Max Quordlepleen

    Re: Any kiwis out there?

    Max Quordlepleen, Dec 13, 2003, in forum: Computer Support
    Replies:
    8
    Views:
    687
    Blinky the Shark
    Dec 13, 2003
  5. {-.-}

    Contracting

    {-.-}, Mar 17, 2008, in forum: NZ Computing
    Replies:
    36
    Views:
    1,205
    Baloo
    Mar 21, 2008
Loading...

Share This Page