Onsite consulting is tax-free when living in a territorial tax regime?

[pieceofmind]

Say I live in a territorial tax regime like Costa Rica or Malaysia, and have a resident corporation doing remote consultation. I understand that work I do from within the territorial tax country is locally sourced income, even if the client is say in the US.

However, if I travel to the US to the client’s office to perform work there for a few weeks and still invoice from the the Costa Rican or Malaysian corporation during that time, is that tax exempt foreign sourced income?

I’m trying to structure my onsite and remote work consulting fees accordingly if I can plan out the project for a year.

 

[Marzio]

To avoid any problem just invoice through an offshore company like US LLC, not a resident company.

 

[daniels27]

To avoid any problem just invoice through an offshore company like US LLC, not a resident company.

Yes. Your offshore claim may get challenged. Hence better use a setup quick does not require you to declare it. Like Hong Kong, personal income from a non Hong Kong company outside the country will never be on a tax declaration legally, hence it also won't get questioned.

Also be careful with the US, you probably need a work permit and your work is taxable there. You better start under the radar there too.

 

[Xshore]

Yes. Your offshore claim may get challenged. Hence better use a setup quick does not require you to declare it. Like Hong Kong, personal income from a non Hong Kong company outside the country will never be on a tax declaration legally, hence it also won't get questioned.

Also be careful with the US, you probably need a work permit and your work is taxable there. You better start under the radar there too.

However in the case of Malaysia offshore income that you remit to Malaysia is taxed (if you report it). Malaysia is no longer territorial tax since 2021, but only taxed offshore income that is remitted to or received in Malaysia.