With an EOR, you don’t need a tax advisor: Here’s why

If you hire abroad — or are planning to — you may be concerned about complying with international and local tax laws, and making the most of any relevant schemes and breaks.

But that doesn’t mean you have to go through the costly, time-consuming process of partnering with local tax advisors in every country you hire in. When you work with an employer of record (EOR), you can get expert guidance and support on payroll taxes in multiple countries — all through one single point of contact.

In this article, we’ll explain how exactly an EOR can provide tax advice solutions, enable your international hiring, and deliver key HR functions (such as payroll, benefits, and day-to-day HR management) — all in full compliance with all local regulations.

What are the wider benefits of using an EOR?

The primary benefit of working with an EOR is that it allows you to hire in different countries without having to set up your own legal entities. This significantly reduces the time and costs traditionally associated with international growth, enabling you to onboard, manage, and pay top talent in just days.

Employer of Record & PEO —

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But an EOR also provides guidance, both in terms of employment laws and tax laws. In Remote’s case, this means knowledgeable advice from our fully in-house team of local specialists, which is invaluable as you hire in new and unfamiliar markets.

As a result, Remote is able to act as a single trusted advisor in multiple locations, ensuring that your expansion is streamlined, scalable, and — most importantly — fully compliant.

How does an EOR ease your tax responsibilities?

When you work with an EOR, your company doesn’t need to navigate complex international tax regulations, or even engage with local tax authorities directly. The EOR handles everything related to payroll and payroll taxes, including:

• Automated payroll calculations

• Local tax reporting and returns

• Tax deductions and withholding

• Social deductions and withholding

• Payslip generation

• Benefit deductions

• Time and expense management

• Bonuses and other incentives

• Permanent establishment analysis

• Guidance on special country-specific tax regimes

• Equity tax treatment

At Remote, our experts also stay abreast of the frequent changes and updates in tax laws and regulations across the globe, ensuring you are always continually compliant.

Crucially, working with an EOR is often significantly more cost-effective than working with tax agents or advisors. As well as being confined to specific countries, the latter often charge hourly rates, or a percentage of the payroll. In contrast, EORs cover everything for a fixed monthly fee.

"If we coordinated everything in-house, I’d have to hire an extra four people to manage the entities, local solicitors, tax firms, accountants, payroll, and translation services. It would cost upwards of $500,000 extra per year. Remote’s EOR service takes that burden off of our plate."

Luke McKinlay, VP of Finance at Fountain

It’s not just about cost and compliance, either. When you work with Remote, our experts can advise you on local tax schemes that you and/or your team members may be eligible for, enabling you to make further savings.

As well as determining eligibility, we can also assist you in registering for these schemes, including (but not limited to):

• “Beckham’s Law” in Spain

• The Creative Tax in Poland

• The 30% ruling in the Netherlands

• The Impatriate Regimes in France and Italy

• The NOR Scheme in Singapore

• Numerous federal and state level schemes in the US

This ensures that you don’t miss out on possible tax breaks and savings in locations that you’re otherwise unfamiliar with.

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Payroll tax management with Remote

When you stack up the efficiency, compliance, and cost implications of EORs against local tax advisors, a few things become clear. EORs offer a more streamlined approach to international expansion by centralizing your HR processes, including tax guidance.

EORs also often have established relationships with local tax authorities, enabling them to handle tax remittances, filings, and reporting in a more efficient and accurate way. This not only saves you the time and resources of finding suitable partners in each country you want to hire in, but frees up your internal resources to focus on core business activities and strategic growth initiatives.

With Remote’s EOR service, you can leave the heavy compliance lifting to us. We specialize in providing comprehensive HR solutions for companies like yours, including local tax guidance and advice.

To learn more about how we can help you hire abroad easily, simplify your global payroll tax management, and make the most of local schemes, speak to one of our friendly experts today.

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