offshoring and taxes

[Hercule]

just wondering... why can IT services be performed offshore and and not be taxed locally at all?
i am not thinking application programming but rather jobs like maintenance, system administration.
curious...

[northernladuk]

Auto caps turned off?

[Martin at NixonWilliams]

just wondering... why can IT services be performed offshore and and not be taxed locally at all?
i am not thinking application programming but rather jobs like maintenance, system administration.
curious...

There is a long list of possible answers for this question!

It depends on the workers cicumstances, i.e. their nationality, the country they are working in and how long for etc. - There is no simple rule.

[BlasterBates]

There is no difference between computer development and/or support and a manufacturer. i,e, a company in India where no-one has set foot in the UK is taxable only in India, provided that everyone accesses remotely

If the company has a presence in the UK, i.e. they send people over then there is a tax liability unless it's short business trips. Under those circumstances they will have to register a business in the UK, and they will account for profits attributable to the UK part of the operation.

The basic rule is, you're taxed where you physically do the work.

[LisaContractorUmbrella]

Can you give us some more information?? Where are you tax resident? How long is the contract to work overseas?

[doodab]

The company providing services may not be taxed in the client's country but the client will generally be liable for things like VAT and import duties if applicable.