IT contracting abroad

pclancy

Hope someone can explain tax to me a bit better, reading the revenues and NZ tax website is sending my brain into mushworld...

Basically i'm in NZ doing IT contract work, I havent setup a company or anything but plan on just paying my income tax here at the end of the year. I just realised NZ has a double tax agreement with Ireland so according to their site my income is liable to be taxed in both countries. Is this correct? If so do I have to register for self assessed income tax with the Revenue in Ireland even though I plan on staying abroad for the next few years in NZ, OZ, Canada and Japan. I was hoping not to have to register a company in each country etc but perhaps I can just use CXC or someone, I'm just really confused as I presumed I just paid tax to the country's government that I was working in, not to Ireland considering I won't be back here for ages.

ChinaImports

pclancy wrote: »

Hope someone can explain tax to me a bit better, reading the revenues and NZ tax website is sending my brain into mushworld...

Basically i'm in NZ doing IT contract work, I havent setup a company or anything but plan on just paying my income tax here at the end of the year. I just realised NZ has a double tax agreement with Ireland so according to their site my income is liable to be taxed in both countries. Is this correct? If so do I have to register for self assessed income tax with the Revenue in Ireland even though I plan on staying abroad for the next few years in NZ, OZ, Canada and Japan. I was hoping not to have to register a company in each country etc but perhaps I can just use CXC or someone, I'm just really confused as I presumed I just paid tax to the country's government that I was working in, not to Ireland considering I won't be back here for ages.

Before you left for NZ were you working in Irl? If you were you maybe due a tax refund from the Irl revenue? It'll also confirm with them that you're out of the country for tax purposes.

As you'll be away for a number of years you won't be liable for Irish tax.

I've done a lot of IT contracting overseas in my youth. What I and colleagues used to do is set-up our trading companies in low tax countries i.e Chan' Islands, Isle of Man, have even met people operating companies out of the Caribbean.

What you do is issue invoices from your overseas co to your clients? Payments must also be lodged into an overseas bank.

What you need is a good accountant that works in the contracting sector to put it all in place.

Hope this helps.

pclancy

Yeah I got the refund and let them know I wouldnt be back for a year.

Interesting stuff, I have looked into a few companies that help you setup trading companies but how would a client in NZ, Oz or Canada react to getting an invoice from a company with an address in the IOM? Wouldnt that be weird? Might just go the CXC route for now, i'm only a desktop/server support engineer I like the formation of company idea but as you say probably best just speak to an accountant somewhere. Cheers for info though.

ChinaImports

pclancy wrote: »

Yeah I got the refund and let them know I wouldnt be back for a year.

Interesting stuff, I have looked into a few companies that help you setup trading companies but how would a client in NZ, Oz or Canada react to getting an invoice from a company with an address in the IOM? Wouldnt that be weird? Might just go the CXC route for now, i'm only a desktop/server support engineer I like the formation of company idea but as you say probably best just speak to an accountant somewhere. Cheers for info though.

Hi,
I've never had any dealings with CXC so can't comment on their range of services, but here's a UK based web site you should have a look at www.Shout99.com.

It's been around for along time, if you get in touch with them I'm sure they'd point you in the direction of accountants that work in the contract arena.

Enjoy the rest of your travels.
Best of luck.