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tax advice, applying for contract with US firm

  • 28-05-2020 1:52pm
    #1
    [Deleted User]
    Posts: 0 ✭


    hi, I have a quick question regarding taxation between here and the US. My partner is applying to do a contract with an association based in the US. They made contact yesterday and asked has she a US tax ID and does she know if she would have to withhold taxes based on the tax treaty with her country? (Ireland) She does not have a US tax ID, this much she knows.

    thanks in advance


Comments

  • #2
    tanit
    Registered Users, Registered Users 2 Posts: 325 ✭✭tanit


    Deleted User wrote: »
    hi, I have a quick question regarding taxation between here and the US. My partner is applying to do a contract with an association based in the US. They made contact yesterday and asked has she a US tax ID and does she know if she would have to withhold taxes based on the tax treaty with her country? (Ireland) She does not have a US tax ID, this much she knows.

    thanks in advance

    There is very little info in your question for any answer. What kind of contract? Is she working for them or providing services to them? Is the activity going to take place in Ireland exclusively and the association pays her?

    You might want to speak with an accountant that knows about DTT between Ireland and the USA, but there is a great likelyhood that she might need it.

    With the information in your question is very, very difficult to start knowing what it might be needed.


  • #3
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    tanit wrote: »
    There is very little info in your question for any answer. What kind of contract? Is she working for them or providing services to them? Is the activity going to take place in Ireland exclusively and the association pays her?

    You might want to speak with an accountant that knows about DTT between Ireland and the USA, but there is a great likelyhood that she might need it.

    With the information in your question is very, very difficult to start knowing what it might be needed.

    Yes, Im sorry, I do realise that now. She is registered in Ireland as a sole trader and has a CRO number. The contract is a research contract with and American Government science based association. She will be providing a service, and the activity will take place in Ireland and afaik the association will be paying her.


  • #4
    tanit
    Registered Users, Registered Users 2 Posts: 325 ✭✭tanit


    Deleted User wrote: »
    Yes, Im sorry, I do realise that now. She is registered in Ireland as a sole trader and has a CRO number. The contract is a research contract with and American Government science based association. She will be providing a service, and the activity will take place in Ireland and afaik the association will be paying her.

    With the info you are providing your wife is providing services and she would have to pay taxes in Ireland. As far as I know she would not need to withhold any taxes but the IRS in America might ask for proof that she is indeed registered for taxes in Ireland and she is providing the services here. Otherwise, by what I have seen in other cases, they force US companies to withhold taxes from the income they are paying (the american side would be withholding those taxes). Generally once you provide that information to the IRS, this type of income gets taxed in Ireland (they are the exception to most DTT).

    What I can recommend you is that she either asks her accountant or alternatively, she might need professional advice from a Tax Advisor that is familiar with the DTT with USA. Most accountants know about this, but because they do not deal with these cases on a daily basis, they will prefer to pass the query to someone with specialist knowledge (this is a very specialised area). You are better off contacting her accountant, or alternatively looking for someone with specialist knowledge in this area, and provide full details of the contract to them. If she needs to register with the IRS, it is very public they have backlogs right now due to Covid19 and it can take longer to get anything done. Better to start as soon as possible.

    IHTH


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