What Should I Consider When Hiring Professionals or Freelancers?
If your employees are professionals or freelancers in their countries of residence, it can be a good option for your business.
In this case, they will issue invoices for their services rather than receive a salary. You can declare these invoices as expenses, making the money tax-free. Additionally, these professionals will contribute to their social security and pension in their respective countries.
It's essential to consider where your employees live and where they are tax residents.
Most countries determine tax residency based on the number of days an individual spends in the country each year.
It is advisable to verify their registration status. Still, your company should not encounter any issues if they are not correctly registered as self-employed, as it is their responsibility. On the other hand, they may face problems with local authorities if they are not registered.
In this case, they will issue invoices for their services rather than receive a salary. You can declare these invoices as expenses, making the money tax-free. Additionally, these professionals will contribute to their social security and pension in their respective countries.
It's essential to consider where your employees live and where they are tax residents.
Most countries determine tax residency based on the number of days an individual spends in the country each year.
It is advisable to verify their registration status. Still, your company should not encounter any issues if they are not correctly registered as self-employed, as it is their responsibility. On the other hand, they may face problems with local authorities if they are not registered.
Updated on: 15/02/2024
Thank you!