Working from home with just a laptop is great.
Landing clients remotely is wonderful too, all while sitting at home or in your garden or kitchen.
What happens if I land a US client? but work from my home country?
Do I need an ITIN for a remote work project with a US client?
Just Breve receive regular emails from a variety of remote worker clients asking for details on applying for an ITIN (US individual taxpayer identification number). However, if you are 100% remote and don't step foot in the US or have no US presence, you won't be eligible to apply for one!
They are issued for US tax return filing or limited exceptions to filing a tax return.
An example of someone we had recently asking for ITIN assistance, but then finding they are not eligible to obtain one (based on the facts and circumstances):
I'm interested in obtaining an ITIN so I can work remotely from my home country of France. Is this possible? And how do I proceed?
I've been offered numerous work from home jobs based on my qualifications. However, without an ITIN I was not able to accept the offers.
Can you assist please and thank you.
One person with just a laptop, wifi connection and few clients here and there. No US presence, no US offices or sales people. No products being sold, just them.
So in the above case as the are remotely working from France, the income from a US perspective is classed as foreign source. No US tax should be held as the income is not taxable by the US.
However, their local country will class it as taxable income and expect tax to be paid to them. In this case an ITIN is not applicable and they are not eligible for one.
The remote worker with a US client would just provide the US client/payor with a completed Form W-8BEN for the remote worker services (if billing in their name) and identify themselves as tax resident in their home country.
The remote worker would also need to ensure they themselves are not creating a physical presence in their home country for the US client! and in this case, the US client would be wise to check with the legal and tax teams to ensure that was the case.
I have a business (i.e. a company) and have landed a US client - is it the same for me?
Well if you are 100% remote and have no US offices, sales people or presence then yes. The entity would need to file Form W-8BEN-E and provide this to the payor, so no US tax is held on the amount the company receives.
Just Breve can assist with the completion of the Form W-8BEN-E if required.
Get in touch today if you have questions or need clarification: