Guinea-Bissau is a small African country with a population of over 2 million. Located on the Atlantic coast, the country is known for its lush national parks and wildlife. The main island of the country, Bubaque, is part of the Orango Islands National Park and houses saltwater hippos. Until 1980, Guinea-Bissau and the Islands of Cape Verde were a single country, but they successfully formed two separate nations after a coupe.
Globalization Partners has a subsidiary in Guinea-Bissau that we can use to help you expand fast. Instead of having to set up your own Guinea-Bissau payroll, take advantage of the fact that we can add your employees to our existing payroll. We’ll make sure you stay compliant and give you the ultimate peace of mind along with the time to run your company.
Taxes Rules in Guinea-Bissau
Guinea-Bissau has numerous taxes for payroll that you need to know. Corporations must pay a corporate income tax at a flat rate of 25%. Value added tax (VAT) is a standard rate of 15%. The country has a social security program where employers pay 14% and employees pay 8%. Employees also need to pay personal income taxes at a progressive rate depending on what they earn. The top bracket has to pay 20%.
Guinea-Bissau Payroll Options for Companies
Do you know what type of payroll would work best for your company? You have four different Guinea-Bissau payroll options:
- Remote: When your parent company has their own payroll, you can add your employees to it and pay them abroad. However, you need to make sure you meet the right regulations for employees of each country.
- Internal: Many companies believe they must set up an internal payroll when they expand. This option usually only works for big companies with large staffs and plenty of resources to help run a compliant payroll.
- Guinea-Bissau payroll processing company: If you want to keep money in the local economy, work with a Guinea-Bissau payroll processing company. The downside is you’ll still need to handle compliance, as you’ll be responsible for this company’s decisions.
- Guinea-Bissau payroll outsourcing: Guinea-Bissau payroll outsourcing with Globalization Partners is the only way to handle your payroll and compliance through outsourcing. Our team will use our payroll and act as the Employer of Record to give you more time and less hassle.
How to Set Up a Payroll in Guinea-Bissau
Before you can set up a payroll in the country, you need to have the infrastructure to house it. If you don’t work with a global PEO, you’ll need a registered subsidiary in Guinea-Bissau to work legally. Unfortunately, it can take weeks, months, or even a year to establish a subsidiary on your own. On the other hand, Globalization Partners can help you get to work in a day or two without your own subsidiary.
Before you hire an employee and add them to your payroll, you need to draft clear entitlement and termination terms. In Guinea-Bissau, employment contracts for a specified time will end at the period the contract expires unless otherwise terminated. Either party can terminate a continuous employment contract at any time.
Payroll Processing Company in Guinea-Bissau
Globalization Partners has the knowledge and resources you need for your expansion. Contact us today to learn more about Guinea-Bissau payroll outsourcing.