Payroll calculation and accrual - outsourcing for offshore

Payroll Outsourcing

The not very stable and favorable economic situation in Ukraine is forcing domestic businessmen to use such financial instruments as offshore companies for their business. Various foreign banks are very willing to work with non-residents, and the owners themselves receive tangible tax benefits and have the opportunity to save on taxes.

Despite the global trend towards deoffshorization, most foreign banks are focused on providing their clients with very profitable financial offers that allow them not only to pay staff salaries in a timely manner and in full, provide travel allowances, but also receive very attractive bonuses. In an environment where cash turnover is progressively declining, and electronic payments and the use of cryptocurrencies are steadily gaining strength, banking institutions are attracting profitable customers in every possible way. All over the world, payment cards for paying salaries to staff are recognized as the most reliable and stable way, and unlike the still risky cryptocurrencies.

Getting a salary card offshore

In an offshore jurisdiction, in order to issue salary cards, company employees must go through the following steps:

• opening a current account of a legal entity in a foreign bank;
• conclusion of a cooperation agreement with a bank;
• organizing the issuance of salary cards in an offshore bank.

In addition to salary cards, you can also issue a prepaid card, which can be used to pay for partner services, and also used as a means of settlement with employees. Funds are credited to this type of cards very quickly, they have free circulation around the world and it is possible to make them anonymous. For the issuance of salary and prepaid cards, the bank takes a monthly commission for the fact that funds are transferred to them. But these costs of the enterprise are offset by preferential taxation of profits.

The benefits of cooperation with offshore banks

Cooperation with banks in offshore jurisdictions brings a number of advantages to clients:

• easing the tax burden on the enterprise, as well as a good opportunity to increase the level of salaries for employees;
• reducing the tax rate if the right offshore jurisdiction is chosen for business registration;
• European level of service, in which banking transactions take less than an hour.

Offshore payroll with Crystal Tax

Payroll for employees of offshore companies has its own characteristics. According to the rules, the salary is calculated hourly, monthly, according to the amount of time worked. Salary deductions include personal income tax, payment to special funds, etc. These deductions are made in accordance with the requirements of the legislation of the country of jurisdiction. After the deductions are made, the salary is credited to the employee's salary card issued by an offshore bank.

The calculation of payments is made by the accountant of the company or an outsourcing company entrusted with accounting services. Crystal Tax has a large staff of qualified employees who will provide effective assistance in calculating the payroll of employees of offshore organizations. Our specialists are well aware of the peculiarities of accounting in different jurisdictions and will be able to perform all the necessary operations, taking into account the individual requirements of the legislation of offshore countries.

Our staff can help you choose the right bank and arrange salary cards with more favorable conditions.