Salary from Foregin Based Startup
Hello, I am expecting an offer letter from a company based outside India. They are quoting their salary figures in USD. I wanted to get an idea from the members of this group about the things to keep in mind while being paid in USD. How much would I have to pay in conversion fees? Or does the employer typically take care of that? I would need to provide them with invoices every month, for which they will pay me. So I have to take care of the tax on my own. Does this mean that PF is not an option or can I deposit PF myself somehow? What other kind of issues should I keep in mind?
nooneknows
Stealth
a year ago
How much would I have to pay in conversion fees? Or does the employer typically take care of that?
- Employer should take care of that, and you will get the final decided amount as employer will be bearing the cost. This will work slightly different if they will use Deel or any other similar platform
I would need to provide them with invoices every month, for which they will pay me. So I have to take care of the tax on my own.
- Yes, and you will fall under 44ADA tax scheme (look it up)
Does this mean that PF is not an option or can I deposit PF myself somehow?
- You will have to do it on your own, not sure if Deel has such options
What other kind of issues should I keep in mind?
- Keep your contract bullet proof from your side
- Get a idea of appraisal cycle from them if you can and get it mentioned in contract
- Ask them how extra work hours are compensated
Also, join remoteindian.slack.com (community of remote workers)
Where did OP say they were being contracted by Deel? Did I miss it? :/
nooneknows
Stealth
a year ago
Where did OP say they were being contracted by Deel? Did I miss it? :/
- He didn't, i mentioned they might as lot of remote companies have started to do so
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Samesorner
Stealth
a year ago
You will have to file advance taxes
Tapti
Stealth
a year ago
Tech stack ? YOE ?
Tapti
Stealth
a year ago
Are they offering a standard salary or salary according to the Indian software developer market ?
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Honestly, really depends on the Startup and the way they're depositing your salary
If they're sending it directly in USD, you'll need to have a word with your bank
From personal experience, this can be quite a hassle and you do not end up getting a very good exchange rate
If you're providing them invoices every month, then seems like you're being hired as a consultant and not a salaried individual, so please file your taxes accordingly, depending on the amount, you might also have to get GST as well
If your employer is involving an employee management platform like Deel, things might be different
Can you DM? I can connect you to folks who are working on cross border solutions
Demon
Stealth
a year ago
When employer pays you in Indian account, you get the payments in rupees after deduction of fees etc.
The thing you need to care about it taxation as no TDS happens. Hire a CA part time.
