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Hiring a local from a foreign company

Consultants or carpenters, bar owners or basket weavers, this is the room to discuss any aspect of expat working or business life in Cambodia; the where's, the who's and the why's.
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nerdlinger
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Hiring a local from a foreign company

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Post by nerdlinger » Tue Aug 01, 2023 2:48 pm

If my company in Europe hires a local here to do remote work, assuming everything is on the level from my country’s side, what issues might there be on this side?

I’m thinking specifically that income tax here is deducted by the employer rather than declared, so the govt might see it as some form of tax evasion or skirting of employment law?

(Btw, anyone who’s reply is going to be “nobody will find out, this is Cambodia”, save yourself the time and move on)
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Alexandra
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Re: Hiring a local from a foreign company

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Post by Alexandra » Tue Aug 01, 2023 4:11 pm

Check if there is a tax treaty between your country in Europe and Cambodia. If there is not there’s a risk of double taxation, depending on your European tax laws.

If so, then hiring Cambodians as consultants with invoicing through a company in Cambodia, Hong Kong or Singapore is key.

You need to check your local laws on employment and tax. Ideally speak to a tax lawyer in the European country about foreign labor.
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MarkinAston
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Re: Hiring a local from a foreign company

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Post by MarkinAston » Tue Aug 01, 2023 8:46 pm

A quick insight to tax for foreigners is outlined here https://cambodiacounsel.com/taxes/#:~:t ... inal%20tax.
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