Legal question regarding this "Permanent WFH" trend
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
comments
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.
But at the same time , lot of people used to permanently work from home
I see your point though
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.
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.
AFAIK a person should file taxes in their tax residency location.