Tax & Virtual Assistants - Frequently Asked Questions

Are there any tax ramifications when hiring an offshore Filipino virtual assistant?

There are no tax ramifications when hiring offshore staff as they are just that: offshore.

The taxes paid for U.S. employees are based on the current U.S. laws and assumes those employees are domiciled in the U.S.  As your Filipino virtual assistant is domiciled in the Philippines, they are subject to Philippine law, therefore any tax burden is carried by them, not you, and is paid by them to the relevant Philippine taxing authority.

In addition, your virtual staff in the Philippines are employed by the Smart VA Staffing Agency. Although you set what work they do, give them performance feedback and they report to you, you are simply contracting with Smart VA Staffing Agency for a service.

 

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