We know taxes can be complicated, so we've prepared answers to the most common questions. The purpose of this article is to answer the most frequently asked legal questions about paying taxes in relationships with independent contractors.
Remember that this information is a guide, not official legal or tax advice. We always recommend speaking to an accountant or tax advisor in your country to guide you based on your specific situation.
Frequently Asked Questions about Taxes
In an independent contracting relationship, which party is responsible for making tax and social security payments? The company or the contractor?
As an independent contractor, you are responsible for paying your own taxes and social security contributions based on the income you receive. Look at it this way: you are your own business, so you manage your tax obligations according to the laws of your country. Ontop does not report your income to any financial or tax entity within your country.
In the commercial relationship with Ontop, are the companies responsible for paying tax withholdings?
The responsibility for paying withholding taxes depends on the tax rules of each jurisdiction. When contracting with Ontop from abroad, withholdings and taxes may arise. The withholdings that must be made when issuing payments are the responsibility of the company, not Ontop, so you should always consult with your legal and tax team before issuing payments.
Should I declare the income I receive through Ontop?
Yes. As an independent contractor, you must report all of your income. A local accountant or tax advisor can give you the best guidance on how to report your earnings correctly depending on where you live.
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Important:
If you need
issue an invoice in the name of Ontop
, be sure to use the company information provided on your payroll invoices, you can get them on the Ontop website. This ensures that all billing information is correct.
✔️General tax information by country
| Country | Tax Identification Document | local tax agency | Access to the agency's website |
| Colombia | Single Tax Register (Registro Unico Tributario - RUT) | National Tax and Customs Directorate (DIAN) | https://www.dian.gov.co/Transaccional/Paginas/Rut.aspx |
| Brazil | Individual Registration (Cadastro de Pessoa Physique - CPF) | Brazilian Treasury (Receita Federal do Brasil) | https://www.gov.br/receitafederal/pt-br |
| Argentina | Unique Tax Identification Code (CUIT) | Federal Public Revenue Administration (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) | Secretary of Finance and Public Credit | https://www.sat.gob.mx/aplicacion/28889/obten-tu-cedula-de-identificacion-fiscal |
| Venezuela | Single Registry of Tax Information (RIF) | National Integrated Customs and Tax Administration Service (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 (RUC) | Sunat | https://www.gob.pe/284-sacar-ruc-persona-natural |
| Spain | Nationals: The Tax Identification Number is the National Identity Document (DNI) | Tax Agency | https://sede.agenciatributaria.gob.es/Sede/en_gb/inicio.html |
| Foreigners: The Tax Identification Number is the Foreign Identity Number (NIE) |
What is the document to prove the existence of the legal entity? Form W-9. Do you want to know more about the W-9? Enter the next IRS official link .
✋Legal Notice
This questionnaire should not be understood under any circumstances as legal advice for the hiring of independent contractors, service providers and/or employees. This questionnaire should be understood as an informative summary of Ontop's previous experiences and should not be interpreted as suggestions and/or advice for its clients and/or third parties. Ontop will not be responsible for any interpretation of this text by third parties and/or clients. Ontop suggests that each party resort to a professional opinion from its own group of lawyers and/or accountants. The Company/Contractor expressly agrees that these questions and answers shall not be construed as an opinion or order. The Company/Contractor shall not hold Ontop liable for any claim or dispute in this regard.
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