Nimble Global, a leader in international workforce compliance, unveils critical insights into the potential compliance pitfalls of Freelancer Management Systems (FMS), challenging the widespread belief that technology platforms can fully mitigate international workforce risks.
The comprehensive analysis exposes a dangerous ‘compliance illusion’ created by FMS platforms, highlighting significant permanent establishment (PE) and tax risks that many businesses unknowingly face when engaging global contractors.
Key Findings:
✅90% of companies using FMS platforms may be exposed to substantial tax liabilities
✅Technology platforms cannot replace proper tax planning and independent risk assessment
✅Indemnification promises often provide limited or illusory protection
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The research reveals critical vulnerabilities in current contractor engagement models:
🟣 FMS platforms lack the legal authority to make definitive compliance determinations
🟣 Contractor relationships can create unexpected tax obligations across multiple jurisdictions
🟣 Administrative compliance does not equate to substantive legal protection
Urgent Recommendations for Businesses
Nimble Global advises companies to:
✅Conduct independent tax reviews of contractor relationships
✅Establish clear boundaries for contractor integration
✅Understand country-specific compliance risks
✅Consider establishing legal entities for long-term international relationships
Source: Einpresswire
