Mali is a West African country with a population of nearly 22 million, many of whom are young people. It’s also the eighth-largest country in Africa and was the cradle of the Empire of Ghana, which was West Africa’s first black empire. If you’re looking to expand into West Africa and tap into a large labor market, Mali could be a great place for your business.
However, you’ll need to consider numerous factors that impact incorporation, such as payroll. You can choose from several Mali payroll options to find the one that works best for your business goals. If you choose Mali payroll outsourcing with G-P, you can benefit from having a partner who will handle payroll and compliance on your behalf.
Taxation Rules in Mali
Mali employers have to worry about personal income taxes for employees as well as corporate taxes. The standard corporate tax rate in Mali is 35%, and all companies need to file annual tax returns before April 30th of the following year. Mali recently made tax changes in 2018 that went into effect in 2019. Employees can choose between two income tax brackets — either 3% or 30%.
The statutory contributions in Mali include, INPS (Pension), AMO (National Healthcare), Contribution Forfaitaire (CFE), Housing Tax and ITS (Income tax).
Mali Payroll Options for Companies
You have four different Mali payroll options:
- Internal: Can your company sustain a large staff and work in Mali for years to come? If so, you can benefit from establishing an internal payroll, as long as you have a compliance expert on staff.
- Remote: If you don’t have the resources for an internal payroll but would like to keep it within your company, you can use a remote payroll. Add your Mali employees to your parent company’s payroll, but make sure you follow all the country’s regulations.
- Mali payroll processing company: A Mali payroll processing company provides several advantages, from outsourcing your payroll to helping you support the local economy. However, they cannot help you handle compliance.
- Mali payroll outsourcing: Mali payroll outsourcing with a global PEO is the best option for many companies. G-P will use our existing payroll to pay your employees, so you won’t have to worry about compliance.
How to Set Up a Payroll in Mali
Setting up your Mali payroll requires a significant amount of time. First, you must have a registered entity in the country, typically a limited liability company (LLC). This can take weeks, months, or even a year, and you can face additional delays or fines if you’re found noncompliant.
G-P eliminates these time constraints through our existing Mali PEO. Instead of establishing your own entity, you can run your company through our compliant subsidiary in Mali. We’ll act as the Employer of Record, which means we can take care of all compliance matters and ensure that you have a smooth expansion process.
Entitlement/Termination Terms
Clear entitlement and termination terms can help you stay compliant, especially if you add them to employment contracts before you set up your Mali payroll. An indefinite-term contract can be canceled at any time by either of the parties. However, fixed-term contracts cannot be canceled by one party except in cases outlined in the contract or major misconduct. If termination is unjustified, the employee should receive payment for the penalty.
Payroll Processing Company in Mali
The G-P team will help you from day one of your expansion so that you can be productive in Mali right away. Contact us today to learn more about Mali payroll outsourcing.