Do I pay tax in my employer's country?

Not automatically. Where you live and work generally decides your main obligations, but it depends on the countries and any treaty involved. Ask an accountant who handles cross-border work.

A United States tax form that foreign individuals give a US payer to certify their foreign status. See the IRS page linked in the sources.

Remote Pay, Taxes and Getting Paid: The Basics

Updated October 2, 2026

This guide is general information, not tax or legal advice, and the rules depend on where you live, where your employer is and how you are classified. Its job is to help you ask the right questions before your first payday.

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Employee pay versus contractor pay

As an employee, tax is normally withheld through payroll in the country where the employer runs it. As a contractor you invoice and are usually responsible for declaring and paying your own tax, including social-security style contributions. In the United States, the IRS describes self-employment tax in its own guidance linked below.

Which country taxes you?

Generally, the country where you live and work decides most of your obligations, regardless of where your employer is. Many countries also tax residents on income from abroad, and tax treaties decide who taxes what when two countries claim it. United States citizens and residents are taxed on worldwide income and may qualify for exclusions; the IRS explains the Foreign Earned Income Exclusion and its conditions.

If you move around, residency rules can change quickly. Get advice before you work from a new country for more than a short visit.

Forms you may be asked for

United States companies typically ask contractors for a tax form: a W-9 from US persons or a W-8BEN from foreign individuals. These are normal after you have accepted, and the IRS publishes both. Never send them to someone before a signed offer.

Getting paid from abroad

Ask for pay in a currency you can receive cheaply. Compare the real exchange rate with the rate your bank or provider applies, plus any fixed fee, since both come out of your pay. Some people use a multi-currency account that gives local bank details in the paying country; compare fees from several providers before choosing.

Questions to ask an accountant

Do I owe tax in the country where I live, the employer's country, or both?
Does a treaty between the two countries apply to my income?
Do I need to register as self-employed or as a business?
How should I set aside money for tax and contributions?
Can I deduct a home office or equipment, and what records do I keep?

Before your first remote paycheque

You know whether you are an employee or a contractor.
You know which tax form the payer needs, and that it comes after a signed offer.
You have the pay currency, frequency and method in writing.
You have compared fees for receiving the payment.
You have spoken to an accountant about where you owe tax.
You have a plan to set money aside for tax if you are a contractor.

Frequently asked questions

Do I pay tax in my employer's country?: Not automatically. Where you live and work generally decides your main obligations, but it depends on the countries and any treaty involved. Ask an accountant who handles cross-border work.
What is a W-8BEN?: A United States tax form that foreign individuals give a US payer to certify their foreign status. See the IRS page linked in the sources.

Sources

General information only, not legal, tax or financial advice. Rules differ by country and change; check current official guidance.