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I use www.payoneer.com service to get paid by US based companies but live in Eastern Europe. Do I need to pay any taxes in US?

Bronx, NY |

I use www.payoneer.com to collect payments from companies based in the US. Shortly www.payoneer.com is a service that provides people from all over the world with US based account for payment collection. Once the payment is collected then, I can withdraw payments via wire transfer or directly.

However, I do pay taxes in my country located in Eastern Europe.

My question is, Do I owe something in the US or Do I have to pay taxes there?

I am not a resident nor a citizen of the US.

Thank you for your help on this matter.

Attorney Answers 4

Posted

Typically only US citizens and residents are taxable on their worldwide income - not nonresident aliens (which is how US tax law would classify you as). Having monies deposited into a US bank account should not automatically subject you to US income taxes, but the bank and/or the US companies that pay you may start withholding US income taxes from your pay if they cannot associate your payments with a valid US tax identification number or there is a question about your tax status (i.e., employee vs. contractor, status as nonresident alien, etc).

The real question is whether the services that you perform via the internet for the US companies are treated as performed in the US or performed outside the US. The answer to this question depends on facts and circumstances not stated in your fact pattern.

If your services are treated as being performed in the US, then you may be subject to US taxes unless an exemption exists under an applicable tax treaty. If your services are treated as being performed outside the US, then you are probably not subject to US tax on this income. In any event, have you filed a Form W-8BEN with your US bank and your US contractors? Please refer to a US tax advisor for guidance on which you can rely.

Anything contained in this response is for informational purposes only and neither the author nor The Ornelas Firm PLLC ("Firm") makes any representations as to the accuracy or completeness of anything contained in this response. Nothing herein shall be interpreted as legal advice from the author or the Firm, or as creating an attorney-client relationship between the solicitor and the author or the Firm. Neither the author nor the Firm will be liable for any losses, injuries, or damages from the display or use of this information. You should consult an attorney whenever confronted with a serious legal issue. The Ornelas Firm PLLC (www.ojotax.com) may be contacted at 888-764-5822 or oscar@ojotax.com.

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Posted

Thank you for the great effort and answer.

Posted

Based on your narrative, it does not appear that you would have any tax obligation here save for withholding/transfer taxes that would happen automatically as money moves from one account to yours back in your home country.

You may want to consult a tax professional either in your home country or here in the US to get some specific advice on your situation of course. Most of us here, including myself, offer a free phone consult.

Best regards,
Frank
Natoli-Lapin, LLC
(see Disclaimer)

The law firm of Natoli-Lapin, LLC (Home of Lantern Legal Services) offers our flat-rate legal services in the areas of business law and intellectual property to entrepreneurs, small-to-medium size businesses, independent inventors and artists across the nation and abroad. 866-871-8655 Support@LanternLegal.com DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Thank you for the great effort and answer.

Posted

Unless you are working outside the US and are simply collecting fees from US companies for products or services, and are rendering those services overseas, you should not have tax issues in the US. US taxes are on those working in the US and US citizens on their worldwide income. If you have more specific questions, contact a tax attorney - this is more of a tax issue than an internet issue.

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Thank you for the great effort and answer.

Posted

You say you are in business but do not know how to pay taxes in your own country? Payoneer claims to be in New York therefore one would assume they would be reporting to the IRS in some fashion like PayPal. However, you way you are colelcting payments not wages, so it is not clear at all.

This is not legal advice but a general comment on society based on a limited set of hypothetical circumstances. No one should act or refrain from acting based on these comments without seeking appropriately licensed legal or professional advice. The author disclaims all liability in respect to actions taken or not taken based on his comments.

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Hi, I'd like to thank you for your time and effort to comment and answer my above concerns. Yes, I do pay taxes in my own country. My concern was if I had any obligations to do the same in the US. I do live in Europe, however. I would use Payoneer services from oversize to collect payments for IT services. Thank you again.

Jonathan H Levy

Jonathan H Levy

Posted

If the services are being performed in your country, your client may owe VAT but unless taxes are being withheld in the US; it could be argued the location of the services is abroad and you are not a US person for tax purposes.

Asker

Posted

Thanks for the great detailed help on this matter.