Contractor Tax Checklist: What You Need To Know To Prepare Your Taxes

Preparing your taxes as a contractor can be a complex and confusing process, especially when you're working in a foreign country. With so many different regulations and compliance considerations to keep in mind, it's easy to miss something important. That's why we've put together this comprehensive international contractor tax checklist to help you navigate the process and ensure that you're ready come tax time.

March 15, 2023

Key takeaways:

  • Determine your residency status and understand local tax laws to impact your tax payments.
  • Keep track of all income and expenses and obtain a TIN number if required.
  • File your tax return on time and stay up-to-date on tax law changes to stay compliant.
A checklist for filing your taxes as an independent contractor

Below is a handy checklist you can use as you prepare your taxes. Use it to make sure you’re not missing any pieces when tax season rolls around.

Determine your residency status: It's important to determine your residency status in the country where you are working, as this can impact the amount of tax you are required to pay.

Understand local tax laws: Make sure you understand the local tax laws in the country where you are working, including any tax treaties or agreements that may be in place.

Keep track of all income: Keep a record of all income received during the year, including any 1099-MISC forms that you receive.

Keep track of all expenses: Keep a record of all expenses related to your work, including any receipts or invoices.

Obtain a TIN number: If required, obtain a TIN number from the local tax authority.

Determine if you need to file a tax return: Determine if you are required to file a tax return in the country where you are working.

Consider hiring a tax professional: Consider hiring a tax professional who is knowledgeable about local tax laws and regulations.

File your tax return on time: Make sure to file your tax return on time to avoid any late filing penalties.

Keep records of your taxes: Keep records of your taxes, including any tax returns that you file, for at least 7 years.

Stay up-to-date on tax law changes: Stay up-to-date on any changes to local tax laws, as these can impact the amount of tax you are required to pay.

By following this international contractor tax checklist, you can ensure that you are prepared come tax time and that you are in compliance with all local tax regulations and requirements. Remember, if you have any questions or concerns, it's always best to consult with a tax professional or financial advisor.

Want an easier way to organize your invoices and receive payments? Tell your clients to use Panther

If you’re a contractor, you know how it goes: clients pay you on different platforms, use different contracts, and don’t keep everything organized. That makes things a headache come tax season.

So consider asking your clients to hire you through Panther. We’re the contractor hiring & payroll platform that makes it easy for your clients to hire you, compliantly, no matter where you live. Invoices are auto-generated and your clients can run payroll in a click—no excuses for late payments or manual work getting in the way.

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