Tax implications of hiring offshore workers

Aug 29, 2006 2 Replies

What is the tax situation regarding hiring someone from say India? If I wanted a couple of fulltime workers who live in India and they work from home...do I have to pay some sort of import tax or duty or anything like that? Or is it just an expense for my business with no tax implications except for me putting it down as a cost?



Thanks,



Jon


It might depend upon how they want to charge you. They might just invoice your Company and that might be a good method.

HI

I agree. It seems the best method. If they are independent contractors they should provide you with an invoice and there should be no problems.

The only preciveable problem is that if they are not a company registered in india and you have invoices from individuals then there could be a problem with the inland revenue as they can not check this person out.

For all intended purposes you can create the invoices yourself and send them to your self. You see the dilema they have.

I would speak to the tax office direct, a link to them is at

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along with other tax information.

Hope this helps Scopy

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