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Old 03-19-2020, 09:12 PM   #1
ShayaanKhan
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Default A question about taxes on giving freelance services

Hello everyone! I'm a freelance graphic designer from India. I had a question about taxes to be filed by me.

If I'm giving my service to clients outside of my home country, are there any taxes due on me by that country? For example, if my client is from USA, do I have to pay taxes to US government too?

Hope I made myself clear. Cheers!
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Old 03-19-2020, 09:35 PM   #2
adjusterjack
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Default Re: A question about taxes on giving freelance services

I did a search of the US IRS website and it's very confusing. I suggest you either call the IRS customer service number

https://www.irs.gov/help/telephone-assistance

or consult a tax pro in whatever country you provide services.
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Old 03-21-2020, 12:28 PM   #3
AFFA
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Default Re: A question about taxes on giving freelance services

I wish to inform you that your agreement and payment terms with the buyer will guide in the matter. In addition, that country may have a double taxation avoidance treaty with India and its terms will have jurisdiction in this matter. You may contact an attorney and seek guidance in this matter.

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Old 03-25-2020, 09:04 AM   #4
Lexus
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Default Re: A question about taxes on giving freelance services

The income of the freelancer is categorized under the income head 'Business and Profession'. The first step to file the income tax returns is to calculate your gross income during the year. As most of the times the payment to a freelancer is done online these days, it is rather easy for a self styled professional to calculate his or her gross income.
The gross income is to be calculated for a given financial year i.e., from 1 st April of a year, to the 31st March of the next year. Loans taken for any purpose do not count as an income.

Incomes up to Rs. 2.5 lakhs are not taxed upon, income between the values 2.5 lakhs to 5 lakhs are taxed @ 10%. 5 to 10 lakhs @20% and above 10 lakhs @30%.

If a person is not a U.S. citizen and they live and work outside the U.S., then any income they make from a U.S. company or person for services provided does not qualify as "U.S. Source income" according to the IRS. Therefore you wouldn't need to worry about withholding or providing tax forms for them for U.S. taxes.
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Old 03-28-2020, 04:14 AM   #5
ShayaanKhan
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Default Re: A question about taxes on giving freelance services

Thank you for the answer!

Quote:
Originally Posted by Lexus View Post
If a person is not a U.S. citizen and they live and work outside the U.S., then any income they make from a U.S. company or person for services provided does not qualify as "U.S. Source income" according to the IRS. Therefore you wouldn't need to worry about withholding or providing tax forms for them for U.S. taxes.
I understood this part this way (please correct me if I'm wrong) - If I'm not a US citizen (& not based in the US), and I'm providing services to US based clients, then I don't have to pay taxes to the US government.
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