(2014-09-18) With many African governments tightening up on their labour, tax and immigration policies, companies employing expatriates increasingly need to up their game.
Companies are flocking into Africa to tap into new developments, and the demand for expatriates is extremely high. But African governments are becoming more astute about being paid the tax they are due.
The days of staff being paid offshore to avoid in-country tax and social security responsibilities are fast drawing to an end. Companies and staff currently involved in these under-the-radar activities should be worried. More so than ever, foreign companies working in Africa need to ensure they meet regulated responsibilities in employment structures in the areas of immigration, labour law, social security and employee tax.
While many African governments encourage employing expatriates with critical skills, the challenges can be varied and complex. The concept of “chain law” in Europe, which links every company in the service chain, and binds them jointly in terms of meeting minimum in-country employment compliancy requirements, is becoming a norm in Africa. Revenue services across the continent have put in measures to ensure compliance. Companies owe it to themselves and the countries in which they work to pay their dues.
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