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WiseOwl58, Attorney
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Hello - What are the legal and tax requirements for a US

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Hello -

What are the legal and tax requirements for a US small business to directly hire a French citizen (who is living in France)? The French citizen would be hired as an employee of the small business to work in France at a US based company. The US based company is doing business in France but has contracted for a professional service with the small business. Is this possible? What are the steps or contacts that would need to be made to do this? How are taxes handled?

Thank you.
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You have to treat the employee as if he were an employee in the United States and comply with all of the IRS tax reporting and withholding requirements. It is the responsibility of your employee in France to provide you with documentation of any exemptions, if such apply to the employee.

The US takes the position that they have the ability to tax the individual first, on earnings from a US source (your company) and the French employee has the burden to show that it is not taxable. Your burden is to comply with all the US reporting and withholding requirements, unless and until that employee gives you certification that they are not subject to US withholding etc.

Good luck to you. I wish you all the best.
Customer: replied 4 years ago.

Thank you. So does that mean that I have no responsibilities to the France taxing authorities?

Your employee would.be responsible for.reporting.to.the French tax authorities, not your US company. It is.also.covered by tax treaty, so an.exemption would.apply.
WiseOwl58, Attorney
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Experience: Experienced business lawyer.
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