Legal question regarding this "Permanent WFH" trend

Samsung
techified

Go to company page Samsung

techified
May 13, 2020 9 Comments

If a company like Twitter with HQ in SF hires a permanent employee living outside US, does that person require any Visa ? If no then do you expect an increase in remote hiring now? Where will that person pay income tax ? Are there any US laws that limit such hiring since this will decrease employment in US ?
#remotework #wfh #twitter #visa

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TOP 9 Comments
  • Dell
    LUHV04

    Go to company page Dell

    LUHV04
    This is simpler than what people think

    Dell has dell USA and dell India
    There are people in dell India that work overnight shifts in US timezone.
    So, the folks in India effectively working for US, get paid in Indian rupees and don’t need visa.
    May 13, 2020 2
    • Samsung
      techified

      Go to company page Samsung

      techified
      OP
      I assume Dell India had to setup a physical office as well. My point is now WFH is becoming the accepted norm and hence it will be even easier for companies since the expectation that they have a physical office presence is also not there.
      May 13, 2020
    • Dell
      LUHV04

      Go to company page Dell

      LUHV04
      Yes we have a office
      But at the same time , lot of people used to permanently work from home

      I see your point though
      May 13, 2020
  • IBM
    oddblock

    Go to company page IBM

    oddblock
    No, the person doesn’t require a visa. But no, that person does not get paid in USD. You would be an employee of your local subsidiary in the country in which you live and paid in your local currency.
    The only arrangement in which a company can have a person living in another country but paid in their home country currency is when someone is under a company-sponsored assignment. The company bears a tax and immigration burden for doing this, in both your home and host countries.
    If you personally choose to live in another country, you are legally obligated to notify your employer ahead of time. If you don’t, your employer could face hefty fines, legal trouble, and even be barred from operating in the country. We fired someone who did this because of the legal liability.
    Source: been through this many times with several different countries. IANAL but know a lot about it.
    May 13, 2020 2
  • Google
    Wireshark

    Go to company page Google

    Wireshark
    What's new? This was already happening and covid just sped it up.
    Major tech companies already pay very little tax in USA. Their employees in USA pay income tax. But if the employee is hired elsewhere; he typically works for the international subsidiary. The income taxes are paid in the country of residence. And the subsidiary pays taxes for doing business in that country. Nothing new.

    What's going to be interesting is that will all these researchers moving to greener pastures, who will own the IP.
    May 13, 2020 1
    • Samsung
      techified

      Go to company page Samsung

      techified
      OP
      Now with WFH being accepted as the default norm, there is even less investment in the form of office space etc. to start international offices.
      May 13, 2020
  • Airbnb
    r1vt4x

    Go to company page Airbnb

    r1vt4x
    Definitely interested in hearing about this. I have dual citizenship (US and a European country).

    AFAIK a person should file taxes in their tax residency location.
    May 13, 2020 0