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Where should an income be taxed if a developer (programmer) works from his home office in the Czech Republic for a company incorporated in Malta? The company sells a global service worldwide.

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    Generally in the Czech Republic. Some European countries require independent contractors to set up a company of their own, making the transaction a business-to-business transaction and relieving the Maltese company of the burden of managing compliance with Czech employment law, but I don't know anything about how the Czech Republic handles situations like this.
    – phoog
    Jun 19, 2017 at 3:21

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You pay income tax in the country you are doing the work, so in your case you will have to pay Czech tax.

This is a general thing that is argued also for businesses. There is more specific info on the European Union websites:

... You will always be subject to the tax rules of your country of residence, you may also have to pay taxes in the other country.

Source: http://europa.eu/youreurope/citizens/work/taxes/double-taxation/index_en.htm

Each country has its own definition of tax residence; yet:

  • You will usually be considered tax-resident in the country where you spend more than 6 months a year
  • If you spend less than 6 months a year in another EU country, you will normally remain tax-resident in your home country"

Source: http://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/index_en.htm

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    Do you have legal authority that backs up that statement?
    – ohwilleke
    Jul 7, 2017 at 16:48
  • Let's say the Czech Republic agrees, and Malta says you pay tax where your employer pays you, that is Malta, then you have a problem.
    – gnasher729
    Jul 7, 2017 at 16:56
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I don't know if the question is still relevant. You don't tax the income per se, but only income actually transferred to the account in the Czech Republic. Hence, it all depends on whether your employer or client (are you a freelancing individual or an employee?) transfers your pay into an account in the Czech Republic directly or you transfer from Malta on demand.

In any case, tax residency applies, so once you reach over 6 months in the county, your income is subject to tax. However, income is understood as what is brought to the country from abroad in this case.

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