There is no simple calculation for tax that is standardised across the world. Each country may adopt similar tax regimes as neighbouring or successful countries however every country is independent with its approach to taxing the income of its inhabitants. This becomes a corporate nightmare for organisations that have to spend countless man hours trying to find out the exact income tax needing to be deducted from a gross salary every month, and then ensure that their information is accurate and current. As we see a large inflow of business onto the African continent this is becoming an increased problem for many companies who are trying to capture the market in its infancy.
It takes on average 3 months to collect sufficient data to ensure that all the correct tax information is accounted for and your company now has the ability to place employees in country. This is a quarter of the tax year spent just collecting the current information that will only be relevant for next 9 months. If this is not an established department in your company for every country that you intend on operating in, it becomes a time consuming and costly event. Keeping an ear to the ground concerning tax changes requires the constant attention of your company, this costs considerable amounts of money each month, money that would be better invested in designing new product ideas etc.
On the European continent this problem is very much the same, with one difference. The European market is saturated with continental payroll companies for MNC’s operating on the continent, companies are spoilt for choice and can pick and change as they please. In Africa, however, this is not yet the case. Information is very difficult to find on taxes where the country barely has an internet connection. Companies throw darts in the dark and hope to hit the target. Expat Africa Payroll has spent years developing this solution for organisations so they don’t have to waste time doing these mundane activities. They pride themselves in being a company that offers what they say and work tirelessly to ensure that the services offered are of the highest standard possible.
Many organisations prefer to keep the payroll function in house, with Expat Africa Payroll they are your in house solution. It is one office that can provide a continental solution. As the African market develops so does the ability to provide a solution for your organisation. It’s the one stop shop for payroll facilities, offering payroll and immigration possibilities for your company.
Its companies like Expat Africa Payroll that are becoming gateways for organisations that have little or no knowledge about taxes in Africa. Organisations need to understand and appreciate the opportunities these companies can present and even by calling and asking questions can sometimes provide your organisation some insight into your next steps to developing Africa.