Working full-time contract remote job from Stackoverflow ads. Whom do I pay tax?
I live in Croatia which has extremely high taxes.
I decided I might try to grab some job from Stackoverflow job ads. I see that many jobs offer remote and full-time contract. My question is, whom do I pay tax for my income? The country where company is, or Croatia?
If it is Croatia, is there any way to avoid it and pay to any other country? E.g. open bank account somewhere else and receive all income there and pay tax to the host, or else pay tax to the country offering me a job?
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Every country has their own tax laws. Many countries have double taxation agreements with many other countries, these agreements dictate how you will be taxed. When these agreements do not exist between Croatia and the country you earn income in, you may face double taxation.
The agreements vary, but I believe the most common scenario is that your tax liability remains chiefly with your country of residence. You'll have to investigate the agreements that Croatia has with other countries specifically to understand the tax liability fully.
I'm not sure if this is an official source, but it looks proper: AGREEMENTS FOR THE AVOIDANCE OF DOUBLE TAXATION
As for Croatia (originally targeted country by question),
I did small check on this website:
www.porezna-uprava.hr/HR_porezni_sustav/Stranice/porez_na_dohodak.aspx
(You might need to use Google translate to read it)
It appears that tax is paid to the country where resident lives.
In my case (Croatia) it's 36% tax for salaries offered on board.
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