Payroll is vital to any business. When you make your company global, you have to consider an unfamiliar set of tax laws and employee registration processes. Rather than navigating these legal concerns...
Read MorePayroll is vital to any business. When you make your company global, you have to consider an unfamiliar set of tax laws and employee registration processes. Rather than navigating these legal concerns on your own, you can work with Globalization Partners. With Vanuatu payroll outsourcing, we'll keep up with local regulations while you mitigate risk.
Payroll is vital to any business. When you make your company global, you have to consider an unfamiliar set of tax laws and employee registration processes. Rather than navigating these legal concerns on your own, you can work with Globalization Partners. With Vanuatu payroll outsourcing, we’ll keep up with local regulations while you mitigate risk.
Often recognized as a tax haven, the island nation doesn’t require income tax on individuals making below VT 750,000 a year. If an employee makes between this amount and VT 3,500,000, their income tax will be 10 percent on these amounts. Anyone whose income is greater than VT 3,500,000 pays 17 percent. Employers are responsible for deducting these tax amounts from each paycheck.
Payroll also includes deductions for the National Provident Fund, which requires a contribution from the employer and employee. Both parties contribute 4 percent to offer an 8 percent total. These deductions support the country as a whole and primarily provide for retirement. This fund also covers special death benefits, migration, and incapacitation.
When you set up payroll as an international company, you have a few options for how you choose to handle it. Your choices include:
How you set up payroll depends on the method you choose. If you opt for an internal department, you’ll first need to establish a subsidiary in the country. This process requires a series of government clearances and fees, and it may take a significant amount of time before the process is complete. Setting up a bank account and getting a tax identification number (TIN) are also crucial parts of this process.
Regardless of whether you establish a subsidiary or manage payroll remotely, you’ll need to register your employees with the provident fund and gain access to their TIN to make payroll deductions.
Upon termination, employees are entitled to a severance package based on the length of their employment and their pay schedule. Employees who have provided service for a year or longer and get paid monthly receive a month of pay for every year of work.
Workers who get paid on a smaller interval than a monthly schedule receive 15 days of pay for every year of service. According to their pay schedule, when an employee has worked for less than a year, they receive one-twelfth of their pay for every month. Employees can also trade in unused vacation leave for payment.
Trust Globalization Partners to handle extensive payroll regulations in your country of expansion. We’ll make sure your employees receive the paychecks they deserve with no legal risk for you. Talk 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.
