How to Pay Freelancers in Sanctioned Environments?

The past few years have been transitional for a large number of companies operating worldwide.

The pandemic, as well as the disruption of business operations in some countries, have rapidly changed our everyday business reality.

If you or your employees have encountered currency restrictions, for example, you know how challenging it has become to maintain international business relationships. You simply cannot process salary payments, and your employees are unable to receive transfers.

Freelancers have fewer opportunities to collaborate with foreign companies: in regions under sanctions, SWIFT doesn’t function, electronic wallets, and many financial services that supported business processes are inaccessible. Companies find it difficult to pay freelancers and remote workers because not all performers have accounts in foreign banks.

Both companies and freelancers suffer from the current situation. Many entrepreneurs have resorted to inconvenient or costly workarounds, while others have completely halted their collaborations.

TAX RESIDENCY CHANGE

We are aware of all these issues and many others that businesses have faced in these new circumstances. We understand how important it is for companies to maintain established processes, trusted employees, and contractors in different countries.

PayWise can help you not only avoid inconveniences but also set up legal and straightforward wage payments, obtain necessary documents for tax purposes, and even legally reduce your tax burden.

Many teams need a new format for convenient work collaboration that involves organizing business processes on a global scale.

There are two ways to solve these problems.

You can either establish a legal entity in a new tax jurisdiction or register as a freelancer in another country, changing your tax residency.

This approach is suitable for both companies and contractors whose work involves hiring people in different countries or managing international accounts. Many large international organizations operate this way, employing a significant number of workers in one jurisdiction while seeking to reduce their tax payments.

Organizing business processes independently in a new country is a challenging and time-consuming task. You will need to navigate international and local legislation and implement a new system for accounting calculations and payment processing.

When transitioning to remote collaboration with people from other countries, numerous questions arise regarding the organization of joint work: properly classifying employees, formalizing employment relationships, and calculating tax payments. Additionally, the accounting department will need to understand the intricacies of international payments and likely start working with digital currencies.

It is important to remember that any transfers sent or received in foreign currency require more stringent reporting backed by international-standard contractual relationships.

PAYROLL

There is another, simpler way to overcome the mentioned inconveniences.

You won’t need to go through the process of employing remote workers under local legislation, investing in opening an office, or financing legal and accounting support.

You can take advantage of the services provided by a modern company specializing in currency transfers, such as PayWise.

PayWise offers an optimal working scheme for remote teams, suitable for managing work relationships among various types of participants: individual entrepreneurs, self-employed individuals, large companies, and their employees. The service facilitates interaction with remote employees regardless of your location or the location of your contractors.

Essentially, PayWise acts as a buffer between the client and any type of remote workers. It doesn’t matter where any member of your team resides or what their tax status is.

Instead of dealing with multiple agreements with remote workers and managing different transfers, you sign a single agreement with the payment service and make one-time transfers to their account. Your foreign contractors receive their payment in their preferred currency and through a convenient method, almost instantly.

All of this is completely legal: we work with various payment systems, provide reporting and closing documents, handle currency conversion, and take care of all the documentation.

An excellent bonus is the opportunity to save on taxes, and PayWise can assist you with that as well.

All you need to do is register in the system and provide us with some data.
It won’t take much time.

Try PayWise for free

It will only take 2 minutes!

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