The Client is an Italian Oil & Gas Consulting Company with global reach.
The Client won a project with one of the major Italian Oil & Gas Companies to provide construction services to an Oil & Gas project in Algeria. The client utilizes their own Italian staff and a series of international contractors for projects of this nature and needed to get 20 of these engineers onsite quickly and for periods of up to 12 months. The contractors were Italian, Portuguese, French or American so had to come from different parts of the globe. The customer also wanted confirmation that any individual working in their site was fully compliant with local employment, taxation and immigration regulations.
They needed a contractor management company that could sponsor these candidates on local Algerian Work Permits, employ and payroll them locally.
The Client was not experienced with international taxation or migration and was not incorporated in Algeria. They were unable to provide sponsorship or local payroll. They required a company not only with an entity in Algeria but one with the capacity to sponsor international contractors on Algeria Work Permits, provide Business Visas where required, employ and pay-roll the contractors and handle issues with local currency. More importantly they needed a company they could communicate effectively with and trust.
The Client contacted Contractor Taxation Ltd through our website and provided an overview of their business and the situation they were facing. Contractor Taxation then engaged our Algeria partner company, overviewed the Clients requirements and we were able to provide a solution, quote and timeline to the Client. This was supplied within 24 hours and included a step by step process that would be undertaken to ensure all of the client’s timelines would be met and within their budget.
The local partner proposed bringing the engineers into Algeria initially on 90 day business visas during which time the candidates full Algerian Work Permits would be processed. Once the Work Permits were approved the clients would return to their country of origin and have the full Work Permit stamped in their passport at the local Algerian Consulate. The candidates would continue to be paid in their country of residence whilst working on Business Visas and once they return to Algeria on the full Work Permit they would be paid a component of their earnings through the Algeria Payroll as per the requirements of their Algerian Work Permit.
Once the Client had given preliminary approval to the proposal our local partner and Contractor Taxation had a detailed conference call to ensure they understood the process and agreed to proceed. Through our expertise in dual tax agreements and non-domicile legislation, the Client was assured they were fully compliant with all relevant tax, employment and immigration law.
The Client worked with Contractor Taxation Ltd and our local Algerian partner to agree a specific contract template which ensures the candidates are bound by the necessary contractual terms.
Our local Algerian partners then issued the 20 Letters of Introduction (LOI’s) from their Algerian entity along with supporting documentation to the Client. The Client then scanned and faxed these to the Algerian Consulates in Italy, Portugal, France and USA. The Business Visas were then obtained in a matter of days and the engineers were able to travel to Algeria and commence the project.
Once the engineers were in Algeria our local partner then commenced the Work Permit process for each engineer. This entailed collating the relevant documentation from the Client, providing supporting documentation and then lodging each application in Algeria. Once approved and when was appropriate from a business needs perspective the engineers returned to their country of origin to have the Algeria Work Permit stamped into their passports. This process took around 7 days (consulate dependent).
Once the engineer returned to Algeria our local partner was able to set them up with a local bank account and commence their local salary as per the requirements of the Work Permit.
The local partner also provided the engineers with end of financial year and end of assignment statements to use with their tax reporting. Additionally we offered our network of specialist providers who can provide the contractor with assistance in travel & health insurance and tax reporting within their home country.
The Client was able to support their project in Algeria with the requisite engineers and meet all expectations of their client on site in Algeria. Navigating the immigration issues in Algeria is a difficult process and they were able to focus on their core business. By using this deal as a reference point they also won several other projects with the same major Italian Oil & Gas Company around the globe. Projects that we are also assisting them with.
Products and services our company used
- International tax advice
- Calculation of net earnings
- Business Visa Application and Work Permit Sponsorship
- Work Permit Application and Sponsorship
- Payment through local payroll
- Calculation, filing and reporting of tax and social security for employer and employees in Algeria
- Expense Processing
- Health Insurance
Services provided by other groups or companies
Contractor Taxation used the service of our preferred Algerian partner who acted as the contractor management company on this project. They sponsored the engineers on a business visas and then work permits. They also handled the in-country payroll and taxation.