There are some countries who tax rule says if you are working in their country for certain days, you have to pay income tax to them. Meaning you are a tax resident.

My question is, how does the country know I am becoming a tax resident? If one forgets to pay it voluntarily after staying for a certain period and attempts to leave the country, it’s not like their border officer will catch you at the departure kiosk and charge you the tax, right?

For example, one can enter the country as a tourist and then stay/travel/working long enough to become a tax resident and not overstay. Does the border office somehow notify the government of his entry and then the timer starts ticking?

Does it work on a honor system in general? How do they enforce it?

  • thekwoka@alien.top
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    1 year ago

    Generally speaking, you owe taxes for all work conducted inside of a country.

    You may not become a bona fide tax resident until whatever the timeline is (normally 6 months) which changes how you are taxed (and what benefits you get for those taxes), not that you are taxed.

    But also, if you are on a tourist visa, you can’t legally work. So by trying to pay taxes, you tell them you were illegally working.

    Mostly, countries don’t enforce this much onto this kind of group. You aren’t actually competing against local labor, and you also aren’t getting most of the benefits those taxes fund. So it’s just a very low priority.

    I can’t imagine any countries really cracking down on it until they at least have some fairly simple digital worker visa, since otherwise they just aren’t offering anything that you could ACTUALLY do to make it legal.

    • thenuffinman47@alien.topB
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      1 year ago

      Business activities on tourist visa are allowed.

      Theres nothing inherently illegals about working remotely for a month or so on tourist visa.

      Illegally working in tourist visa = obtaining and working a job within the country.

      And then obviously if you stay for a extended period of time and work remotely then you fall into a weird zone where youre. Tx resident in that country and need some kind of visa

      • thekwoka@alien.top
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        1 year ago

        Business activities on tourist visa are allowed.

        Theres nothing inherently illegals about working remotely for a month or so on tourist visa.

        Yes, on the first.

        The second is wrong. Working is not Business.

        • dbbk@alien.topB
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          1 year ago

          I’ve always found this a little weird though. Like, you can go to a country for business meetings, but you can’t “work”. What if you’re an executive, and basically all of your job is meetings?

          • thekwoka@alien.top
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            1 year ago

            Well, broadly speaking, if you think about the intent of the laws, this isn’t that confusing. Such labour laws exist for the purpose of protecting the domestic work force, primarily those that have the skills to perform that job locally.

            In the event of specific executive stuff, it’s specific. There isn’t actually competition.

            On top of just the fact some Executive isn’t going to just overstay and illegally move there.

            Add on even further that if a country wants to court foreign investments, requiring the foreign company executives to get work visas for everyone they send to the country to just inspect things and have a meeting would be a major difficulty in the context.

            Want to speak at a conference in our country? Get a work visa!

            Probably wouldn’t have many conferences hosted in your country. Most of the “business” contexts are ones where the country WANTS people to come in.

          • PingasIndustries@alien.topB
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            1 year ago

            It’s a grey area. Countries have laws against foreigners working on tourist visas to protect the domestic workforce. Most really do not give a crap unless you are working there on a digital nomad visa long enough to become a tax resident, and taking in enough cash that tracking down your potential taxes is worth their time