Does USA contract work outside the USA for non-residents?

I work as a software engineer (independent contractor) in Ukraine. Outsourcing companies here often provide two contracts to sign: one is a legal local contract with Ukrainian company and another one is USA contract (which is written in English and therefore has no legal force in Ukraine).

So the question is, is there at least any purpose of such contracts? Can I break the rules stated in these contracts with impunity given that currently I’m not a US citizen, or will it affect me in some way in the future?

Update: Page sample
page from contract

1 Answer

It looks quite strange. Does the contract specify which law is applicable? I am certain that English language contracts have legal force in Ukraine, particularly, if the contract is based on law of a foreign jurisdiction. Otherwise, Ukraine would have to shut down as its companies would not be able to interact with the outside world which does still work primarily in English language.

For some reason, the Ukrainian company and the USA company have decided to share the costs of your employment. I find it quite strange that the USA company chose to hire you as an employee as that can lead to fairly serious tax problems for that USA company (the so called creation of a permanent establishment “postoyannoe uchrezhdeniye”) in Ukraine. To protect yourself, make sure that you declare 100% of your income to the tax authorities in Ukraine. Otherwise, this can quickly become your problem.

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