- Basic Facts
- Statutory Labor Requirements
- Employee Income Tax In Brazil
- Employee Social Security In Brazil
- Immigration In Brazil
- Value Added Tax (VAT) In Brazil
- Withholding Tax In Brazil
- Statutory Employee Benefits In Brazil
- Payroll In Brazil
- Ease Of Doing Business In Brazil
- Business Opportunities In Brazil Section
- Why Use Global Expansion To Hire Your Employees In Brazil
BASIC COUNTRY FACTS
The Federated States of Micronesia
United States Dollar
United States Dollar
STATUTORY LABOR REQUIREMENTS
- Probationary period is generally of 6 months
- New Year's Day (1st January)
- Constitution Day (11th May)
- United Nations Day (23rd October)
- FSM Independence Day (3rd November)
- Veterans Day (11th November)
- Christmas Day (25th December)
- There is no mandatory paid maternity leave
- There is no paternity leave
- The law sets a standard of an eight-hour day and a five-day workweek
- The law mandates premium pay for overtime.
- There are no legal provisions prohibiting excessive or compulsory overtime.
13th Month Salary in Brazil
- There is no evidence that there is a statutory requirement to pay the 13th or 14th month salary.
- The labour code refers to governmental employees.
- Tax laws are administered and enforced erratically.
- The personal income tax rate is 10 percent, and the corporate tax rate is 21 percent.
- All persons performing services as “employees” are subject to the wages and salaries tax
- All “wages and salaries” of employees are subject to the tax.
- Wages and salaries include almost everything of value an employee receives in exchange for his services.
- “Wages and salaries” are taxable even though not paid in cash.
- For example, money due you at the end of the year but not yet paid is taxable in the year.
- Likewise, if someone gives you merchandise or other goods in exchange for your services, the value of those goods are taxed as “wages and salaries”
- The tax is six percent (6%) of the first $11,000 and ten percent (10%) of any excess earned during each calendar year.
- Employees earning less than $5,000 during a calendar year are entitled to a $1,000 deduction before computing the tax.
Up to $11,000
- The Federated States of Micronesia allows anyone to enter the nation visa-free. In fact, there is no such thing as a Micronesia visa.
- The permitted length of stay varies from 30 days to 365 days.
- For example, the citizens of the United States can remain in Micronesia for up to a year, while the nationals of the Schengen Area can visit for just 90 days.
- All the other travelers can stay for 30 days in Micronesia, but once they get arrive, they can extend their stay up to 60 days.
- The only thing that is required of you before you go to Micronesia is to have a valid passport that does not expire for 120 days (about 4 months) from the date of your arrival.
- Foreigners seeking to settle down in Micronesia’s idyllic isles for work or a business related enterprise, will need to have a working permit before they travel.
- Work permits and permanent residency visas can be obtained by writing to the Federated States of Micronesia Department of Resources and Development.
- The department will let you know what further evidence you need to provide; this may include an official business invitation from the company you’ve been sent to work with or a birth certificate
VALUE ADDED TAX
- The sales tax ranges from 3% to 5% depending on the state
3% to 5%
- There is no withholding tax on dividends, interest and royalties
- These are mandatory benefits as postulated by law
- These include public holidays, sick leave, overtime pay
- Statutory benefits also include social security benefits
Social Security Benefits
PAYMENTS AND INVOICING
- An Employer’s Income Tax Quarterly Withholding Return must be filed for each quarter, showing each employee, the amount of wages paid, and the amount of tax withheld, along with certain other information.
- These tax returns and the payment of the tax withheld are due on January 31, April 30, July 31 and October 31.
- An employer not withholding the tax from employees or withholding the tax but not paying it over to the Division of Customs and Tax Administration can be held liable for the tax, interest and penalties.
EASE OF DOING BUSINESS
- The ease of doing business index is an index created by Simeon Djankov, an economist at the Central and Eastern Europe sector of the World Bank Group.
- Higher rankings (a low numerical value) indicate better, usually simpler, regulations for businesses and stronger protections of property rights.
- According to the World Bank Micronesia ranked 158th in the World in 2019 in terms of ease of doing business.
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