[grey-area]

If you are employing people, that may be true, but if you're paying a corporation, even if it's a one-person corporation, I can't see why income tax would come into it. It's one company paying another for services. I imagine the parent was thinking of contractor companies, not individual contractors working as short-term employees, in which case income tax wouldn't apply.

[pmjordan]

If "setting up an offshore subsidiary company for the purposes of employing remote workers" fits your definition of "it's extremely easy", then yes, I can't argue with you.

[grey-area]

That's not at all what I was suggesting. I'm not suggesting setting up subsidiaries or anything of the kind.

It's easy to subcontract work out to other countries if you're not tied to the idea of having employees, but instead hire companies (companies which already exist, like say small design shops, packaging firms for apps, or tech firms) to perform services for you, rather than individuals.

Take 37 signals for example, when they were a consulting company. A company in say Paris could have hired them to work remotely, without worrying about paying income tax - that's all handled on the subcontractor end if it is a company.

[pmjordan]

That's a bit of a different beast to what the original commenters were suggesting. Engagements of that caliber usually involve outsourcing whole projects or subprojects (web presence for product X, whatever). Of course, there's overlap between what you can get a remote employee/contractor do vs. what you can "outsource". Note that levies might still be due on services performed across certain countries' borders. (much like customs duties on goods)

I could also imagine a kind of "talent agency" model, though that doesn't seem to have caught on in tech. (Yet? I'd sign up for that if it provided me with a steady-ish flow of high-quality gigs and sorted out all the legal/tax paperwork for me.)

[ricardobeat]

Toptal (http://toptal.com) is trying to fill that void. Also heard of http://www.10xmanagement.com/.

Back on topic, that's exactly what the original commenter (zura) suggested. You can hire a foreign company for contract work without needing to hand over an entire project - you'll be paying for deliverables/features instead of time, but the end result is the same. AFAIK you have to report it to the IRS, but don't owe any taxes on it.