Imagine for a second that the pandemic is over. Global travel has resumed, Covid-19 hot spots are a thing of the past, and companies are keeping a promise some have been making lately to attract top talent: to allow remote work from anywhere in the world, at least for a few months a year.
Then envision a Londoner, a New Yorker, and a Hong Konger walking into a bar. Let’s say it’s in Rio de Janeiro. They all make the same salary—$100,000—and have been allowed to work remotely from Brazil for two months.
Once they’ve put down their caipirinhas and returned home from their stints abroad, who will owe the most in taxes? According to Robert Salter of tax and advisory firm Blick Rothenberg, our remote worker from New York could face the highest bill, while the Londoner could have nothing extra to pay. This assumes, however, that all three fill out their Brazilian taxes on time in accordance with regulations and—perhaps most important, to avoid costly mistakes—in Portuguese.
And Salter warns of a worst-case scenario for this new generation of jet-setters: being required to file multiple tax forms in different countries while also losing any benefits from tax treaties between jurisdictions. “It could be a disaster,” he says. “You could have to do four or five tax returns.”
Employees who work abroad even for just a few weeks may find themselves liable for taxes in overseas jurisdictions, Salter says. Many countries have double-taxation agreements in place to avoid excess taxation. But such agreements may apply only to federal taxes and not to city or state obligations that are common in many parts of the U.S. or social security liabilities common in Europe.
Continue reading your story on the app
Continue reading your story in the magazine
Shanghai's Black Eye
Expats are ditching the city, jeopardizing efforts to turn it into a top financial hub in Asia
The Best A Man Can Get?
To be more relevant to younger consumers, Gillette introduced a retro line of men’s grooming products and teamed up with Bugatti on a $170 razor. The strategy seems to have pulled the company out of a, uh, hairy situation
Shaina Taub, writer and composer of the off-Broadway hit Suffs, takes on The Devil Wears Prada—with some help from Elton John
The End of China's Bulk-Buying Boom
A distinctive form of e-commerce is in free fall after a shift in attitude in Beijing
FOR A MEASURE OF JUST HOW FED UP AMERICAN WORKERS ARE, LOOK TO STARBUCKS, WHERE BARISTAS ARE UNIONIZING ALA PACE THAT WOULD HAVE BEEN UNIMAGINABLE A YEAR AGO AND INSPIRING SIMILAR ACTIVISM ELSEWHERE
Wall Street Comes to Nashville
AllianceBernstein relocated 1,000 jobs in an effort to save $80 million a year
Why Land Is Key to Brazil's Presidency
Lagging Lula in polls, Bolsonaro is wooing rural voters by giving squatters title to their farms
Democrats' Inflation Anguish
Legislators are appealing to the White House to "do more" to contain prices
A Pharaoh Goes to Oxford
The star of the opera Akhnaten takes his role so seriously, he’s been offered a fellowship in Egyptology
But What If There Aren't Plenty Of Fish in the Sea?
Investors say Forever Oceans’ technology will help build a new kind of marine farm
NAOMI JUDD GUNSHOT NIGHTMARE!
Beloved country singer's tragic suicide shrouded by secrecy & heartache
What's It Like Working a FOUR-DAY WORKWEEK?
It's inspiring, say three leaders whose companies are doing it. But that doesn't mean it's easy.
Wait! Did Anyone Tell the Customers?
Our biggest fail at my company Calibrate was around communication. But it taught me that trust is the only foundation worth building on.
WHY SAMMY THE BULL TURNED MOB RAT!
Marked for death by Godfather Gotti
When to Pay for Experts
Lawyers, accountants, web developers, and other experts are important for your businessbut you may be spending too much on them.
TP-Link GX90: A supremely powerful gaming router
It skips the bells and whistles and is all the better for it.
JONBENET DAD DEMANDS NEW MURDER PROBE!
Wants more tests on crime scene DNA evidence
Deschanel has gotten her share of shade for not blending in. But that's exactly the quality you need to thrive, she says-and she credits it with powering her as a comedic actress, singer, and cofounder of multiple companies.
The best free VPN: It's important to choose wisely
VPNs are best when they’re paid for, but if a premium account isn’t in the cards then here are our top recommendations for a free service.
TURNCOAT TOM'S HOLDING PENALTY!
Can't get cozy with Gisele after breaking pledge