The Client provides specialist management consultancy services in Africa.
The Client is using international contractors for interim programme management assignments within the energy industry. Nigeria is one of the worlds most difficult countries for compliance with labour and payroll tax (ranked 180th by the World Bank by the average time required). For international contractors working in Nigeria it can be difficult and expensive to repatriate their earnings back home which makes running a full local payroll for expats unappealing.
The Client sought to minimize this administrative and financial burden. On top of this their contractors requested guarantees regarding their net income before accepting an assignment. The Client lacked the necessary expertise in international taxation to provide competitive quotes on take-home income. The Client sought to outsource payment and invoicing (P&I) for their foreign contractors to a contractor management company.
The Client was not experienced with international taxation. Faced with rapid growth in project work The Client wanted to lure the best talent with competitive remuneration and minimize the financial administration. They believed using an external provider for administration of payment to the contractors would free up internal resources to focus on revenue generating projects as well as improving their success rate with new hires.
The Client was able to outsource payment of external contractors to Contractor Taxation Ltd. When talking to a new prospective contractor The Client need only provide their gross daily pay rate for the contractor. The contractor is assigned an agent with Contractor Taxation and deals directly with them to get their earnings quote. This quote is delivered within 1 business day.
Through our expertise in dual tax agreements and non-domicile legislation, the contractor is assured of the highest possible retention rate on their earnings. Additionally they will be fully compliant with all relevant tax, employment and immigration law.
The Client worked with Contractor Taxation Ltd to agree a specific contract template which ensures the contractors are bound by the necessary contractual terms. Within hours of the contractor accepting The Client’s offer we will have them setup in our invoicing and payment system and sent through the signed contracts.
Every month The Client receives an itemized invoice supported by signed timesheets and expense reports. All their international workers can be processed through one monthly payment.
Both contractor and client have access to detailed reporting on invoices, payments and expense processing. Contractor Taxation Ltd also provides each contractor with end of financial year and end of assignment statements to use with their tax reporting. Additionally Contractor Taxation has a network of specialist providers who can provide the contractor with assistance in travel & health insurance, processing of personal expenses, professional indemnity / public liability insurance and tax reporting within their home country.
The Client reduced their average employment cost and eliminated payroll administration. Average time taken to on-board new contractors reduced. Their foreign contractors benefited from increases in their take-home pay.
Products and services your company used
International tax advice
Calculation of net earnings
Services provided by other groups or companies
Contractor Taxation uses the services of our specialist local partners where necessary to assist with tax advice and filing.