Friday Feature – FMC helps recruitment agency avoid oversea taxation pitfalls

This week Fund My Contractor was asked by an existing recruitment agency if we could fund placements for some countries in South America and if there were any pitfalls they had to look out for. The countries in question were Guatemala, Costa Rica and El-Salvador which we quickly replied that FMC could provide funding and credit insurance within these countries (subject to credit check with Euler Hermes). We let them know that each country had its own with-holding tax element which would be deducted from the amounts paid as it left the country (between 15-25%) so this would need to be factored into the profit margins to ensure they remained above the 10% GP requirement. We also let them know that there were no double taxation agreements between the UK and the countries to mitigate or reduce the with-holding tax element.flying-oversea