Freelancing in HK for US-based company

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  1. #1

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    Freelancing in HK for US-based company

    I have been offered some freelance work for a friend's company in the US. But I want to check out the tax implications first.

    First, I am not a US citizen/resident alien, etc. The work would be effectively connected to the US business (I believe) but the work (i.e. services performed) would be done here in Hong Kong.

    I have gone through much of Publication 519 and, as far as I can tell, I would not be liable for US tax, e.g. according to the time basis calculation. Is this right?

    Any insight into this by someone who has done similar freelance work would be appreciated.


  2. #2

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    My husband (Aus/UK) subcontracts for our firm (US firm) and I am employed by it and so far have never been even slightly affected by US taxes. Would not expect that to change if hubby subcontracted directly with the US entity, although it might if I was employed by it....


  3. #3

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    I can't see that there would be any liability in the US so long as you are not an employee (and probably not even then). There would, of course, be a liability in Hong Kong, and if you get more than HK$25,000 per year from this I believe that you will need to register some sort of business here, presumably a sole proprietorship.

    Last edited by PDLM; 06-10-2008 at 11:35 AM.

  4. #4

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    Thanks for the information; appreciate it.


  5. #5

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    All they might need would be a W-8BEN form signed, attesting that you're not a US citizen / resident.