Author Topic: Working Remotely from Israel and Taxes  (Read 2680 times)

Offline Mklovin24

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Working Remotely from Israel and Taxes
« on: October 08, 2015, 06:38:03 PM »
Hi All,

I'm hoping to move with my wife to Israel for a year at the end of December, but I just hit a roadblock.

I currently work remotely within the states for a company based in the Boston area. While spending time researching the potential legal issues that I would face working my American job from Israel, my company found the following:
Though I would not have my status as an employee, and would be working as an individual contractor, it seems that there may be foreign tax implications, and they would like to avoid that complication.

They have proposed that either I go for under 90 days, leave the job and come back in a year, or I don't go at all. I was under the assumption that as a non-resident I would be exempt...

I would love to hear if any others have experience working remotely from Israel for a US based company, and how they dealt with these issues. Off the top of my head, the best workaround would be to work for less than 90 and come back to the states, and then go again, but I've read that if you spend over 183 days in Israel during a tax year, you are considered a resident for tax purposes...

Any and all help is greatly appreciated.

Thanks!


Offline henche

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Re: Working Remotely from Israel and Taxes
« Reply #1 on: October 08, 2015, 06:39:17 PM »
They're concerned they'll have to pay Israeli taxes on your behalf? hmm, never thought of that.

Offline gozalim

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Re: Working Remotely from Israel and Taxes
« Reply #2 on: October 09, 2015, 01:58:34 AM »
are you keeping an american address?

Offline shauly

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Re: Working Remotely from Israel and Taxes
« Reply #3 on: October 09, 2015, 02:35:56 AM »
I work for an American company from Israel, and honestly, nobody here has to know.

Offline Chief Rabbi of New York

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Re: Working Remotely from Israel and Taxes
« Reply #4 on: October 09, 2015, 02:37:50 AM »
maybe you should ask the chief rabbi of Israel  :P
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Offline Emkay

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Re: Working Remotely from Israel and Taxes
« Reply #5 on: October 09, 2015, 02:48:55 AM »
I work for an American company from Israel, and honestly, nobody here has to know.
Same by me, Israel doesnt know and the American company doesnt care

Offline churnbabychurn

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Re: Working Remotely from Israel and Taxes
« Reply #6 on: October 09, 2015, 10:41:54 AM »
Clearly this company does care.


I'm curious how and why you lose your employee status just because you work a little further away?

Offline gozalim

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Re: Working Remotely from Israel and Taxes
« Reply #7 on: October 10, 2015, 09:49:19 PM »
Clearly this company does care.


I'm curious how and why you lose your employee status just because you work a little further away?
probably when he changes his payment address to an Israeli one, legally requiring them to file Israeli taxes?

Offline A3

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Re: Working Remotely from Israel and Taxes
« Reply #8 on: October 10, 2015, 10:22:34 PM »
probably when he changes his payment address to an Israeli one, legally requiring them to file Israeli taxes?

But he said independent contractor... Wont have to pay any taxes and issue him a 1099

Offline churnbabychurn

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Re: Working Remotely from Israel and Taxes
« Reply #9 on: October 10, 2015, 10:29:34 PM »
probably when he changes his payment address to an Israeli one, legally requiring them to file Israeli taxes?
Inconvenience for the employer is not something that would determine his employment status.

Offline ckmk47

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Re: Working Remotely from Israel and Taxes
« Reply #10 on: October 10, 2015, 11:02:15 PM »
Mklovin24,
Could you get your paycheck and 1099 sent to an American address?  Would that relieve your employer from legally 'knowing' your whereabouts?
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