Cxcglobal.com Placing Contractors Overseas Be compliant not complacent 10/02/2015.

cxcglobal.com

Placing Contractors OverseasBe compliant not complacent10/02/2015

Common Misconceptions

A contractor can work in any country and not pay tax there as long as it is for less than 183 days

If my contract is extended past 183 days I will just get registered then

A contractor can pay their social security in their home country if they have an A1 form

There are so many contractors working in different countries that is doesn’t matter, they will never be investigated anyway

But they told me it was OK!

100% of income is declared in the country of work

What is full compliance to CXC

When does it apply

183 day ruling

183 day rulingcontinued

OECD Model Tax Convention states that the 183 rule is applicable when: • The recipient is present in the other State for a

period or periods not exceeding in aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and

 • The payment is paid by, or on behalf of, an employer

who is not a resident of the other State, and  • The payment is not borne by a permanent

establishment which the employer has in the other State

Misuse of A1 formsObtaining an A1 form

• An A1 form can be applied for by workers who are going to work abroad for a period not expected to last for more than 24 months.

Other conditions also have to be met.

The worker:

• must continue to carry out substantial work in the country where the A1 has been issued from

• must have pursued activity in the country issuing the A1 form for at least 2 months before going to work overseas

• Must maintain the means to carry on work in the country where the A1 form has been issued from

Free Compliance Risk AuditGetting it right

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Thank you

Charles [email protected]

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