# US Company employing UK citizen to do work in Romania



## Lawman (Jan 28, 2013)

My company is based in the US, and is looking to employe a UK citizen to do work on a service contract for a fitness/ spa center in Romania. 

Will the UK citizen have to pay Romanian taxes? UK taxes? 

Should this be set up with the UK expat having a consulting company? We are trying to keep him on our company payroll, but we do not have an office or organization in UK or RO.

Thoughts?


thanks so much!


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## BBCWatcher (Dec 28, 2012)

What many employers do is hire a tax accountant and hire the employee on a tax equalization basis. That is, he would be paid according to U.K. norms, and the accountant would figure out what that requires and how much to pay the U.K. and Romanian tax authorities.

Work performed in Romania is subject to tax in Romania. Whether he becomes a tax residence in Romania or not -- and thus taxed in Romania on his worldwide income -- depends primarily on his length of stay in Romania.


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