How to work with freelancers legally and show such transactions as expenses?

Kodde

New Member
Hello, a have a company that works as a freelance marketplace connecting customers and freelancers. The company registered in Estonia, corporate bank account opened in Paysera.
I can successfully accept payments from customers, but how to make payments from Paysera corporate bank account to freelancer's Payoneer account still being able to mark these transactions as expenses? (According to Estonian law company expenses are not taxable).
This is my first experience operating an offshore company, I just want to figure out the workflow and do not have problems with taxes.
 

Sols

Trusted Member
Business Angel
This is a question you should ask your accountant. Or better yet, this is something your account should be doing for you as a part of regular bookkeeping service.

If you don't have an accountant yet, get one. Your corporate service provider can normally help out with that.

It's very important that you keep a copy of the agreement with each freelancer and have an invoice for every outgoing payment.
 

Kodde

New Member
This is a question you should ask your accountant.
Yes, I'm searching for an accountant, just wanted to ask here, maybe someone has any experience with freelances and Payoneer payments.
Should I create a master Payoneer account that will accept payments and then distribute them between freelancers, should I pay directly from the bank account and is it possible?, or maybe ask freelancers to create invoices manually... There are still so many options.
 

Sols

Trusted Member
Business Angel
I think that mostly comes down to cost, which is a business decision. AFAIK, you can wire funds to Payoneer accounts. If they do have a master account setup, your only reason for having one would be to potentially save on transfer fees (one big transfer to Payoneer instead of several smaller).

It's easier for an accountant to understand transfers from your bank to Payoneer, but it ultimately comes to being a discussion between you and the accountant.

I haven't done this exact same thing before but I work with businesses that use third-party payment processor a lot. The added complexity of introducing a third-party payment processor should be carefully weighed against the added paperwork. In some industries, it's entirely unavoidable. In some industries, it's common practice. For paying freelancers, it's very common to use third-party processors if your payees are in more difficult to reach countries like India, China, and Philippines.
 
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