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TaxRobin, Tax Preparer
Category: US Tax
Satisfied Customers: 15722
Experience:  International
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I am a uk citizen who is going to reside in the Czech Republic

Customer Question

I am a uk citizen who is going to reside in the Czech Republic but work for a USA firm. How do I get paid, taxed and health insured? What will happen to state pension earnings? How will the USA company set this up when I currently live in the uk?
Submitted: 3 years ago.
Category: US Tax
Expert:  TaxRobin replied 3 years ago.
The US company will not be required to issue you a tax reporting form (W2 is used in the US) because you are a nonresident alien for US tax reporting issues.
They will most likely have you complete a W8 BEN document. This is required by them so they can show the US Treasury department that you are not under US withholding requirements.
When they ask you to complete this form, it is just so they can keep it for their records and show the US that they did have this expense.
You will be taxed in your resident country. This will mean the Czech republic. The personal income tax rate is a flat rate of 15%.
Self-employers pay tax advances by themselves and file an income tax return every year to settle any differences between the amount due and amount advanced. You will want to retain the services of a Czech tax professional when you arrive. If you are a foreign resident and you are employed in the Czech Republic, you only have to pay tax on the income you earned in the Czech Republic.
There is a public health insurance in the Czech Republic but that is beyond the scope of tax advice.
Your US employer should advice if they will cover your health insurance.