One critical step in establishing your company internationally is to set up payroll for your employees. To help you navigate regulations, G-P can take on the responsibility for you. Our team of experts can administer your payroll effectively and ensure your employees receive the compensation and resources they need.
Taxation Rules in Comoros
As an employer, you are responsible for handling income taxes for each of your employees. The Pay As You Earn (PAYE) taxation system in the country scales according to the worker’s income in Comorian francs (KMF):
- Below 150,000: 0 percent tax
- 150,000-500,000: 5 percent tax
- 500,001-1,000,000: 10 percent tax
- 1,000,001-1,500,000: 15 percent tax
- 1,000,501-2,500,000: 20 percent tax
- 2,500,001-3,500,000: 25 percent tax
- 3,500,000: 30 percent tax
You will also have to handle corporate tax requirements. You must register for social security but do not need to withhold taxes on your employees’ behalf.
Comoros Payroll Options for Companies
Your company can consider several different payroll management options:
- Subsidiary: A subsidiary allows you to handle payroll administration for your international employees. This option can offer convenience for managing requirements but also requires sizable resources to operate.
- Internal payroll processing: Depending on your company’s situation, you may be able to manage payroll for your local employees internally in your home country. This option offers lower transactional costs because you can keep your administration within your company. However, you’ll need to devote more staff and resources to the complexities of international payroll management. You’ll also be liable if you encounter any payroll administration problems.
- Payroll processing company: Many countries have local companies available to handle payroll for your employees. These companies often charge high fees, and you must take on the legal risk for any errors they may make on your behalf.
- Global Employer of Record (EOR): As an EOR, G-P offers you a trusted, efficient, and risk-free way to manage payroll. Our expert team will administer payroll for you, ensuring full legal compliance while assuming liability on your company’s behalf.
How To Set Up a Payroll in Comoros
Administering internal payroll requires your company to have an entity in the country. You’ll need significant time and money to establish a subsidiary but once you have a presence in Comoros, you can run your own internal payroll. Working with G-P eliminates this time-consuming process as you can use our established entity and payroll in the country.
Either party has the right to terminate an indefinite employment contract at any time. However, you must have justified grounds that directly relate to the employee’s conduct or abilities.
You are required to provide a written notification of termination that includes the reason for the dismissal. An employment termination on other grounds, including discrimination due to sex, race, religion, or health status, is considered an abusive breach of contract. If a court finds you guilty of unjustified breach of contract, you may be responsible for interest and damages.
The Ministry of Labor sets the conditions and duration of notice and the pay rates for severance. The terms will depend on the worker’s seniority, field, and the circumstances around the dismissal.
Payroll Processing Company in Comoros
For risk-free, reliable, and efficient payroll outsourcing services, trust the G-P team. We’ll ensure your in-country employees receive consistent and accurate payment on time. We’ll also manage associated compliance requirements so you can do business confidently with ultimate peace of mind.
Find out more about how we can help your company by getting in touch with us today.