Working remotely from Cabarete for a US firm

[Scott18684]

Rebel is not totally correct.

The US company will have to register in the DR (neither cheap nor easy), will have to file timely labor and payroll reports, pay all labor costs (social insurance, etc.) and will be liable for all Dominican labor laws.

You do get a US tax exclusion for income earned offshore, but you will have to file Dominican Income Taxes and pay on income earned above RD$25000 (I think that's the amount; could be a little more or less) per month, about US$500 per month.

And when you file US taxes as a foreign resudent, you have numerous additional forms you have to file to make sure you are not holding money offshore Uncle Sam thinks may be his.

It's not as simple to become 100% legal in the DR as one may think.

The DR is a very difficult business environment.

Then again, you could just do what many do: don't do anything, go legally commando, and hope you don't get caught.

I have my own LLC in florida and I am living in DR and in US less than 30 days out of the year. My income is earned with customers in the united states. Just the fact that I am not living in the US more than 30 days is that enough to get the exclusing of 100 grand a year to not pay taxes?

 

[Kal]

Hello
I'm planning to work remotely from the same area, Puerto Plata. What solution did/do you use for stable and fast internet? I work as a graphic and web designer, and need to upload fairly large files. Would be grateful to hear your experience and advice.
Thanks in advance!

 

[chico bill]

I have my own LLC in florida and I am living in DR and in US less than 30 days out of the year. My income is earned with customers in the united states. Just the fact that I am not living in the US more than 30 days is that enough to get the exclusing of 100 grand a year to not pay taxes?

Better check with a tax professional but since you seem to be selling product in the US (or services) I don't think so.
I think you need to be earning income from an entity with a contract in a foreign country or a foreign company.

And if your income is being directly deposited to a Dominican Bank, you may pay taxes in both places

 

[bienamor]

Better check with a tax professional but since you seem to be selling product in the US (or services) I don't think so.
I think you need to be earning income from an entity with a contract in a foreign country or a foreign company.

And if your income is being directly deposited to a Dominican Bank, you may pay taxes in both places

Will put it this way. I worked for GTE International at CODETEL for 7 years. Payed by GTE. Company car from Codetel all maintenance etc was also counted as income benefit tax filing by Arthur Anderson. Less than 30 days a year in the USA. Salary banked in USA. Did not get the 100k exemption.

 

[tripp789]

You need to check with a US tax professional. My understanding is that income produced in the US is taxed there as well.


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[HarpB]

Hi

The exclusion is $105,900 for 2019. Many rules involved physical presence test or residence test. However depending on your employment. Self employed you owe 15.2% tax (estimated tax in advance) more rules for social security and medicare. If you are a true employee then witholdings should happen. Multiple other scenarios with different situations. Best advice, seek more advice from more qualified parties.