As a business owner, you understand the importance of managing payroll, from deducting income taxes to making retirement contributions. While payroll has similar qualities around the world, the regulations are different from...
Read MoreAs a business owner, you understand the importance of managing payroll, from deducting income taxes to making retirement contributions. While payroll has similar qualities around the world, the regulations are different from one country to the next. When you expand to Tuvalu, you need to understand the local laws to keep your company compliant. Globalization Partners provides the support your need with payroll outsourcing.
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As a business owner, you understand the importance of managing payroll, from deducting income taxes to making retirement contributions. While payroll has similar qualities around the world, the regulations are different from one country to the next. When you expand to Tuvalu, you need to understand the local laws to keep your company compliant. Globalization Partners provides the support your need with payroll outsourcing.
Tuvalu has a flat income tax rate of 30 percent. As an employer, you’re responsible for deducting this tax from your employees’ paychecks before they receive them.
Employers are also responsible for withholding pension contributions for employees who are members of the fund. Employees must contribute 13 percent of their monthly income to the Tuvalu National Provident Fund (TNPF). Employers must contribute 10 percent.
Your company has a few options for managing payroll when you expand abroad. To find the best method, you should consider your resources and how much liability you’re willing to hold. Your options include:
How you set up payroll will depend on the option you choose. Regardless of your management solution, you’ll need to obtain various registration numbers from your employees. Taxpayer Identification Numbers (TINs) allow you to submit income tax deductions, while TNPF membership cards allow you to make pension contributions. Keep these IDs on file for every employee.
If you want to establish an internal payroll department, you will need to incorporate a company in the country first. This process requires a company constitution and various government clearances. Your company will need extensive resources to establish this subsidiary, but you can apply for a TIN and TNPF membership card once you have an entity.
Tuvalu labor laws do not require any form of severance payment, regardless of the reasons for termination or dismissal. However, the TNPF will provide coverage in specific circumstances, including:
At Globalization Partners, our team of HR and legal experts ensures our payroll practices are compliant in every country we cover. With payroll outsourcing, we take on the liability so you can have peace of mind and focus on developing your business abroad. Reach out to our team today to learn more.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
