Do You Require Your Personnel To Work In Multiple African Countries Throughout The Year?

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WORKING IN MULTIPLE COUNTRIES


In the case of Personnel working in multiple locations, there are three key areas that need to be covered.

These can only be successfully and compliantly managed through regular communication between the clients’ designated authority and Employ Africa’s Account managers or Client relationship managers.

The primary conditions that need to be met in order for EA to support our Clients in utilizing personnel throughout Africa;

TAX COMPLIANCE WORKING IN MULTIPLE LOCATION


We sign country-specific contracts with all our employees. Therefore, a contractor may at any one time have employment contracts in 4 Countries. All these contracts are based on the ‘No work, No Pay” principle. There are various examples here of how this work and how we administer such, I will supply you with a few examples.

  • We are responsible for the taxes in the country in which the expat is working, and not in his home country.
  • If we employ a local in his home country, only then are we responsible for the taxes in their home country. Therefore, sending an employee who is contracted from his home country, will trigger double taxation for our client, as then we become responsible for paying the taxes in his home country, as well as the country in which he is working (Tax at Source).
  • Most of our employees work 28/28 and are paid a flat net day rate.
  • A general rule is to always ensure that an expatriate never spends more than 180 days (in a 12-month period) in a particular country as they will then become a tax resident in that country and will be subject to tax on their worldwide income in that country. (They will be taxed and treated the same as a local resident.) Double taxation treaties will need to be taken into account in these circumstances.
  • The majority of the African countries have differences in their local taxes’ laws, so each case is looked at in isolation. But in the case where an employee is required to work in multiple locations, they are working for different companies under different employment contracts and the taxes from the income derived from that specific country are paid in that specific country. (Tax at Source)
  • It must be noted that all employees hired as expatriates are responsible for taxation in their home country. This is clearly defined in their employment contracts.

 

EXAMPLE 1: A Ghanaian National working in Ghana, required in Mozambique for three months.

 

Were a Ghanaian national is working for Employ Africa Ghana, we are responsible for the taxes in his home country in respect of the income received from us in Ghana and any additional income received on foreign assignments outside of Ghana.

Should this employee be required to work in Mozambique for three months, the following should be applied;

  • In Ghana he is contracted at a Gross Salary. Therefore, his pay in Ghana will not negatively be affected by a 3 months assignment in Mozambique.
  • Based on all the income earned whilst on assignment in Mozambique, Employ Africa Mozambique will be liable to pay over taxation to the Mozambican Government, based on tax at source.
  • Therefore, if the Employee is earning a Gross Salary of $100 per day, we uplift the rate to $120 per day. The $20 gets paid over to the Mozambican Revenue authorities.
  • This is based on Mozambique tax legislation that employees on a STWP (Short term work permit) are only required to pay 20% on income earned in Mozambique.

 

EXAMPLE 2: A Ghanaian National working in Ghana, now required to work in Mozambique for more than 6 months.

 

Were a Ghanaian national is working for Employ Africa Ghana, we are responsible for the taxes in his home country in respect of the income received from us in Ghana and any additional income received on foreign assignments outside of Ghana.

Should this employee be required to work in Mozambique for more than 6 months, the following should apply;

  • The employee is offered a Job by Employ Africa Mozambique.
  • The employee resigns from Employ Africa Ghana.
  • If you keep the employee on a Ghanaian Employment contract and he works in Mozambique, whilst remaining a tax resident in Ghana;
    • You will be required to pay full payroll tax in Ghana.
    • You will be required to pay full payroll tax in Mozambique.
  • Once the employee has resigned from Employ Africa Ghana and is working for Employ Africa Mozambique, the taxation liability to our clients is significantly reduced, whereby you will only be required to pay taxes in Mozambique and are no longer liable for taxes in Ghana.

 

In noting the above, we reiterate the importance of continuous communication with us, whereby we can actively assist with our knowledge of taxation across Africa and ensure that you are not unnecessarily paying additional taxation.

We are here to advise you on the best and most cost-effective way in using our manpower, that will add significant growth to your bottom line. It is all about the planning, which starts at your tender stage. We actively work with our clients ensuring they have the correct and accurate manpower costs when compiling their pricing for their respective bids.

Emergency Response Compliance Working in Multiple Location


Anytime an employee steps out their door for their rotation, we need to ensure that Employ Africa knows where they are in case of medical emergency.

 

When we start work in a new location, we require operations to fill a form out (Appendix A – Location and Risk Assessment). This is information is vital for us to assist in the whereabouts of an employee and how to assist them in an emergency. In order to be compliant in terms of emergency response, employee locations and work sites are needed to ahead of time.

 

Location & Risk Assessment

 

As the Employ Africa Group continues to improve their service offerings in Africa. We will be going into a very detailed analysis of all locations that personnel are currently deployed to and ensure various scenarios are run in respect of medical emergency and/or Medevac requirements. Thus, ensuring we have quick turnaround times and any possible obstacles are pre-identified as we further mitigate the risks.