Not in any country for 183 days in a year - where can company be registered/tax paid?

[BlasterBates]

This is very incorrect.

My advice is not incorrect it is based on personal experience, and when I read your account it doesn't really contradict what I'm saying.

You pay tax wherever you work and however short your contract is as a non-resident with limited tax liability, if you don't qualify for residency you don't need to declare any other income from any other countries. Normally you are resident in one country where you declare all income from all countries where they take into account tax paid. Quite often on employment income there is no additional tax to pay regardless of the tax rate.

[mrv]

You pay tax wherever you work and however short your contract is as a non-resident with limited tax liability

If an UK citizen goes to Italy for a month or two to work on a contract, he can choose where to pay taxes. After 183 days he must pay taxes in Italy. In both cases when declaring his income in the UK, he must declare amounts earned and taxes paid abroad.

[TheCyclingProgrammer]

If an UK citizen goes to Italy for a month or two to work on a contract, he can choose where to pay taxes. After 183 days he must pay taxes in Italy. In both cases when declaring his income in the UK, he must declare amounts earned and taxes paid abroad.

This simply isn't correct. You may remain tax resident in the UK (where you will pay income tax on all of your worldwide income) if you are in the other country for less than 6 months but depending on other factors, you may also be liable to income tax on earnings in the destination country from day one (which you would be able to offset against your UK tax bill depending on any double taxation treaties).

[BlasterBates]

If an UK citizen goes to Italy for a month or two to work on a contract, he can choose where to pay taxes. After 183 days he must pay taxes in Italy. In both cases when declaring his income in the UK, he must declare amounts earned and taxes paid abroad.

That is not true. You are assuming that you only pay taxes in Italy after 183 days.

You are liable for tax on income earned in the country even if you are non-resident.

[stek]

If an UK citizen goes to Italy for a month or two to work on a contract, he can choose where to pay taxes. After 183 days he must pay taxes in Italy. In both cases when declaring his income in the UK, he must declare amounts earned and taxes paid abroad.

Rubbish. You can't chose which State you prefer to pay your taxes in. Forget the EU here, it's like any other country in the World, work there, taxed there, full stop.

It's this sort of unresearched crap that clutters up these threads causing the same issue to be repeated ad nauseam, THERE IS NO HARMONISATION OF TAX LAW IN THE EU.

[TheCyclingProgrammer]

Rubbish. You can't chose which State you prefer to pay your taxes in. Forget the EU here, it's like any other country in the World, work there, taxed there, full stop.

It's this sort of unresearched crap that clutters up these threads causing the same issue to be repeated ad nauseam, THERE IS NO HARMONISATION OF TAX LAW IN THE EU.

The EU actually has a whole page about this:

FAQs - Income taxes abroad - Your Europe

My current French employer is posting me to the Netherlands. Where will I be taxed?

You'll probably remain tax-resident and taxable on your worldwide income only in France as long as:

the posting is for no longer than 6 months
your salary is not paid by or on behalf of any employer resident in the Netherlands
your salary is not paid by an office or other permanent business owned by your employer in the Netherlands.

However, if all of these 3 conditions are not met, you may also be taxable in the Netherlands– at least for the income earned during your posting.

In a typical contractor situation, your employer is YourCo. You can probably argue the first two conditions are met easily enough, but the third one is harder and it's the local tax man you'd need to convince too.

[BlasterBates]

The EU actually has a whole page about this:

FAQs - Income taxes abroad - Your Europe



In a typical contractor situation, your employer is YourCo. You can probably argue the first two conditions are met easily enough, but the third one is harder and it's the local tax man you'd need to convince too.

Great link, I would also add this isn't just a theoretical point, we have had quite a few posts from contractors spending less than 183 days in Germany who have got on the wrong side of the German tax authorities and ended up being landed with a large bill.