Disclaimer

This Q&A should in no way be characterized nor considered as legal advice for the purpose of hiring independent contractors, service providers, and/or employees. This Q&A should be considered as an informative summary of Ontop's previous experiences and shall not be interpreted as suggestions and/or advice to its clients and/or third parties. Ontop shall not be responsible or liable for any interpretation of this text by third parties and/or clients. Ontop suggests that a professional opinion must come from each party's own group of lawyers and/or accountants. The client expressly accepts and agrees that this Q&A shall not be construed as an opinion or order. Clients shall also hold Ontop harmless from any such claim or dispute in that sense.


The purpose of this questionnaire is to provide answers to the most frequently asked legal questions, regarding the payment of taxes in independent contractor relationships.

✔️Which party is responsible for the payment of taxes and Social security?

In an independent contractor relationship, the vendor or independent contractor is generally required to pay its own taxes resulting from any compensation paid to it by the contracting party.

Likewise, the independent contractor is the one who, usually, must make their own contributions to social security.

These obligations may vary depending on the country in which the parties are located.


✔️Are Clients responsible to pay withholding taxes when contracting with Ontop?

Depending on the country that the Client or the contracting entity is based, additional taxes may apply in contracting with Ontop from abroad and/or withholding taxes related to hiring international Contractors. When withholdings are required Clients are responsible to pay the taxes related to Ontop services so they should always consult their tax and/or legal team with regard to the applicable taxes.


✔️Should a contractor declare income?

In an independent contractor relationship, the vendor or independent contractor is generally required to pay its own taxes resulting from any compensation paid to it by the contracting party. For more details, the Contractors should consult their own Lawyer and/or accountants.


✔️General tax information per country

Country

Tax Identification Number

Local Tax Authority

Internet page of the Local Tax Authority

Colombia

Single Tax Register (Registro Unico Tributario - RUT)

Dirección de Impuestos y Aduanas Nacionales (DIAN)

https://www.dian.gov.co/Transaccional/Paginas/Rut.aspx

Brazil

Individual Registration (Cadastro de Pessoa Física - CPF)

Hacienda Brasileña (Receita Federal do Brasil)

https://www.gov.br/receitafederal/pt-br

Argentina

Unique Tax Identification Code (Código Único de Identificación Tributaria - CUIT)

Administración Federal de Ingresos Públicos (AFIP)

https://www.afip.gob.ar/landing/default.asp

India

Permanent Account Number (PAN)

Income Tax Department

https://incometaxindia.gov.in/Pages/default.aspx

Mexico

Taxpayer Identification Card (Cédula de Identificación Fiscal - CIF)

Secretaria de Hacienda y Credito Público

https://www.sat.gob.mx/aplicacion/28889/obten-tu-cedula-de-identificacion-fiscal

Venezuela

Single Registry of Tax Information (Registro Único de información Fiscal - RIF)

Servicio Nacional Integrado de Administración Aduanera y Tributaria (SENIAT)

http://declaraciones.seniat.gob.ve/portal/page/portal/PORTAL_SENIAT

Pakistan

Computerized National Identity Card (CNIC)

Federal Board of Revenue

https://fbr.gov.pk/categ/register-income-tax/51147/30846/71148

United States

Social Security Number (SSN) or Taxpayer Identification Number (TIN)

Social Security Administration (SSA) or Internal Revenue Service (IRS)

https://www.irs.gov/individuals/international-taxpayers/taxpayer-identification-numbers-tin

Peru

Single Registry of Taxpayers (Registro Único de Contribuyentes - RUC)

Sunat

https://www.gob.pe/284-sacar-ruc-persona-natural

Spain

Nationals: The Tax Identification Number is the National Identity Document (DNI)

Foreigners: The Tax Identification Number is the Foreign Identity Number (NIE)

Tax Agency (Agencia Tributaria)

https://sede.agenciatributaria.gob.es/Sede/en_gb/inicio.html


✔️What is the document to prove the existence of the legal entity?

Form W-9. Do you want to know more about the W9? Enter the following link.



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