Outsourcing and Taxes

10 replies
I'm a US resident and thinking of hiring a VA from the Philippines to maintain my websites and help to build backlinks and create content.

If I were to hire someone in the US I know I'd need to send them a 1099 as an independent contractor.

How does it work with hiring a foreigner as an independent contractor?
#outsourcing #taxes
  • Profile picture of the author ArticlePrince
    I know you'll hate this answer, but you should ask an accountant what's best. What we do could be wrong or outdated, and if you do one thing worng, you can get busted. Not worth the risk :-/ Just my opinion
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  • Profile picture of the author myeanne
    Hi Mike, I would like to help you out. Hit me up to discuss.
    Hope to hear from you.
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    We Lease Offshore Employees

    Hire inexpensive labor from the Philippines!
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  • Profile picture of the author tyroneshum
    I'm outsourcing to the Philippines and I wasn't obliged to pay their taxes. That's why I outsourced to them!

    Actually, they're the ones responsible to pay for their own taxes through your fixed monthly payment for example.
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  • Profile picture of the author sandra98
    I've read that if the services are provided by a non-US resident living in another country, there is no need to issue a 1099.

    That said, this is something that you best consult with an accountant or someone who is a professional in accounting.
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    • Profile picture of the author mikeroosa
      I agree I'll talk to my accountant today, but just wondering what the rest of you were doing. Thanks.
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  • Profile picture of the author sarahberra
    Go to an accountant. I think I know the answer, but I don't want to give out the wrong advice.
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  • Profile picture of the author YanKirby
    Guys, just to make it clear:

    You dont have to worry about taxes when outsourcing to the Philippines. Fact be told, im pretty sure 80%-98% of VA's dont even declare what they are making money from online ventures.

    Surprising as it may seem to some but that's just how things go around here. Might well be another good reason to scale your business up through outsourcing.

    I should know, im a full time IMer in PH and have been working with my own SEO team for years.

    Hope this clears things up.

    -Yan Kirby
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