- Thread starter JD Jones
- Start date
Remote jobs in the DR.
Yea, this is a great thread for those of us who might want to dabble back in the workforce or help others find work.
Question:
If you work from home in the DR for a company outside the DR (let's say Sweden) and you send this company an invoice for your work and this company transfers the € to your Dominican € account, do you have to pay taxes in the DR?
The company in Sweden treats me like a freelancer.
If you work from home in the DR for a company outside the DR (let's say Sweden) and you send this company an invoice for your work and this company transfers the € to your Dominican € account, do you have to pay taxes in the DR?
The company in Sweden treats me like a freelancer.
Not in less you care to volunteer some money. Never heard different............
I'm no legal expert but as far as I know, officially yes you do. It's not relevant where the company you work for is, but where you live (permanently).
Please however consider SKYs response above as well.
When it comes to companies in the US offering "remote work" as a direct hire, most won't allow you to work outside of the country mainly due to potential lawsuits. If I'm on the clock and have a slip and fall accident in the DR, they have a major problem on their hands if they agreed to knowingly allow me to work outside the country/ nearshore because their (99%) worker's comp policy won't cover this type of claim.
There are a few tricks Dominicans use to cheat/ beat the US corporate system but most are eventually caught and terminated within a month or two with zero recourse.
I've worked in the outsourcing industry off and on for over a decade down here and also provided contracted remote tech support for call centers throughout Latin America and Florida.
Remote isn't what most people think it is, it's often a bit more complex.
There are a few tricks Dominicans use to cheat/ beat the US corporate system but most are eventually caught and terminated within a month or two with zero recourse.
I've worked in the outsourcing industry off and on for over a decade down here and also provided contracted remote tech support for call centers throughout Latin America and Florida.
Remote isn't what most people think it is, it's often a bit more complex.
Many US companies do not allow working remote outside of the US for data security reason. Especially companies that have data containing sensitive information such as health information, financial information, etc. For example, in my family's medical billing company there are US employees and an overseas third-party part of the company. The client data access for the US employees is almost full access (depending on the position). While it is the opposite for the overseas company, their access is very limited. Just enough access for the very basics needed to perform their job.
Exactly the same with many EU companies. There is however one important thing: If you're an employee, then, as far as I know, the above is correct. If you're an "independent contractor" or a "freelancer"; then it's a bit different as you act as a separate company to your employer. So they are no longer your employer, they are your client. This is also very strictly used in the contract between you and them.
This is very true. I've had to deal with things like this, and the limitations come not only from legislation, but also company internal policies, which are in place obviously to win the trust of the clients on top of what the law requires. This aspect is very present on companies operating globally, and often it might be the very same company operating in two different countries, teams working on the same project, but as they are different countries, you have to be careful what you can transfer from one office to another.
Yes as I stated above, a "direct hire" would (in legal terms) constitute as an employee of the company.
Exactly, so officially, it's fully up to you to report any income to the tax officials in your country of residence. As Sky posted in the beginning of the thread, many tend to perhaps not pay so much attention to this...
Depends on where in the DR and of course your lifestyle.
If you like to drink a good wine daily you need a lot of money. Is your house been paid for, children? What kind of car? Or no car?
I think you need, in my case, 5_6000 US.
There are two more aspects:
1. If an employee starts working from another country, the employer has to follow the labour and tax laws of that country. So if a person moves to the UK to work from the US, for example, then the US company has to be compliant with the UK's tax laws and labour laws. This is when switching the employee to a contractor is better and employees who do unauthorized remote work get fired.
2. It terms of tax for the employee/freelancer, if you live in a place for too long, you end up becoming tax resident there. Differs by country (183 days in many countries) and I suppose DR is lenient in that aspect but they do claim jurisdiction if work was delivered from here (at least, thats the theory)
Another practical problem is trying to pay a DR bank account from a business account (at least from the UK). Most money transfer services (Remitly/Wise/WU) don't offer it for business purposes and anything over a certain amount will require declaration of the purpose depending on the service. In such a declaration, the sending business has to say that this transfer is for professional/business services and using that DGII would know you are working from here. If you use a SWIFT transfer, then you get hit with a not-so-good forex rate + fees + there is a purpose field in SWIFT anyway which exposes the reason for the transfer.
It might be better to get paid in Sweden and then transfer to the DR as required.
1. If an employee starts working from another country, the employer has to follow the labour and tax laws of that country. So if a person moves to the UK to work from the US, for example, then the US company has to be compliant with the UK's tax laws and labour laws. This is when switching the employee to a contractor is better and employees who do unauthorized remote work get fired.
2. It terms of tax for the employee/freelancer, if you live in a place for too long, you end up becoming tax resident there. Differs by country (183 days in many countries) and I suppose DR is lenient in that aspect but they do claim jurisdiction if work was delivered from here (at least, thats the theory)
Another practical problem is trying to pay a DR bank account from a business account (at least from the UK). Most money transfer services (Remitly/Wise/WU) don't offer it for business purposes and anything over a certain amount will require declaration of the purpose depending on the service. In such a declaration, the sending business has to say that this transfer is for professional/business services and using that DGII would know you are working from here. If you use a SWIFT transfer, then you get hit with a not-so-good forex rate + fees + there is a purpose field in SWIFT anyway which exposes the reason for the transfer.
It might be better to get paid in Sweden and then transfer to the DR as required.