US-Source Salary in Soles or dollars?

Answers to your qestions about moving to, and living in, Peru,
pepper2014
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US-Source Salary in Soles or dollars?

Postby pepper2014 » Sat Nov 22, 2014 11:04 am

Hope someone can help me with an employment related question:

A U.S.-based employer wants me to go to Peru for about two years, but they want to pay me in Nuevo Soles in Peru. My family will remain in the States (lots of time on planes), so most of my expenses will remain there. This employer is somewhat inexperienced as to foreign assignments and says the only way they can pay me legally is in Peruvian Soles.

Question is this ... how hard is it to move money out of the country with any regularity? I would need to convert about US$10K a month from Soles into dollars and then send it my bank in the States if they paid me in local currency. Do the government or banks put any limits on foreign remittances? Would it make more sense to open a dollar account in Peru and have the company deposit it monthly and then send it back out again?

Anyone have any experience doing this? Anyone know any good accountants or lawyers in Lima that could help with these and other issues should I decide to take the assignment?

Thanks for any help.


danjaker
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Re: US-Source Salary in Soles or dollars?

Postby danjaker » Sat Nov 22, 2014 12:55 pm

Dosent matter, the payment into your account would be automatically converted. Even if you did have an account here, transferring is not a big deal. People do this for a living, and with much more money.
Very easy.
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chi chi
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Re: US-Source Salary in Soles or dollars?

Postby chi chi » Sat Nov 22, 2014 4:43 pm

danjaker wrote:Dosent matter, the payment into your account would be automatically converted.


He can open a US dollar account. Interbank has this kind of accounts. I have a EURO account with Interbank.
pepper2014
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Re: US-Source Salary in Soles or dollars?

Postby pepper2014 » Sat Nov 22, 2014 4:59 pm

Thanks for the help, folks. I dug a little further and it does seem that dollar accounts are quite feasible. Not sure why the employer thinks they need to pay me in soles in order to get the visa, but I guess that's a question for an immigration lawyer. Will track one down.

Peruvian taxes seem to be a little on the high side. I calculated about 27% on the sliding scale, plus 13% for mandatory social security pension fund and another 9% payroll tax for the health system for which the employer is ostensibly responsible. That comes to nearly 50%. Am I missing something?
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Alan
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Re: US-Source Salary in Soles or dollars?

Postby Alan » Sat Nov 22, 2014 5:21 pm

Contracts can be made in Soles or Dollars, and all banks give you the option in either currency. As for taxes, bear in mind that you ought to be able to retire the money from your pension fund once you leave the country. Regarding medical coverage, the bad news is you will probably want to double-up with a private policy. You can get great coverage for $1500 a year. It it´s not too late, maybe try to negotiate that as a perk. Good luck with all.
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chi chi
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Re: US-Source Salary in Soles or dollars?

Postby chi chi » Sat Nov 22, 2014 5:24 pm

pepper2014 wrote:Hope someone can help me with an employment related question:

A U.S.-based employer wants me to go to Peru for about two years, but they want to pay me in Nuevo Soles in Peru. My family will remain in the States (lots of time on planes), so most of my expenses will remain there.

I would need to convert about US$10K a month from.


Please give us some advice on how to get a job that pays $10K a month.
danjaker
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Re: US-Source Salary in Soles or dollars?

Postby danjaker » Sat Nov 22, 2014 6:23 pm

chi chi wrote:
pepper2014 wrote:Hope someone can help me with an employment related question:

A U.S.-based employer wants me to go to Peru for about two years, but they want to pay me in Nuevo Soles in Peru. My family will remain in the States (lots of time on planes), so most of my expenses will remain there.

I would need to convert about US$10K a month from.


Please give us some advice on how to get a job that pays $10K a month.

Yea, me too please .. lol
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Re: US-Source Salary in Soles or dollars?

Postby argidd » Sun Nov 23, 2014 10:39 am

pepper2014 wrote:Thanks for the help, folks. I dug a little further and it does seem that dollar accounts are quite feasible. Not sure why the employer thinks they need to pay me in soles in order to get the visa, but I guess that's a question for an immigration lawyer. Will track one down.

Peruvian taxes seem to be a little on the high side. I calculated about 27% on the sliding scale, plus 13% for mandatory social security pension fund and another 9% payroll tax for the health system for which the employer is ostensibly responsible. That comes to nearly 50%. Am I missing something?


It depends on your income... But tax is calculated in scales.
9% social security is paid by your employer, solely.
Private pension is about 11% now, as long as you do it on private pension.

So you get an idea, I have an employee on payroll with a 12,000 salary and his income tax is less than 2000. Oh, also remember that you must get 14 salaries plus a 15th salary deposited into a special account... However, if your employer is not registered I'm not sure how they would comply with these payments and Peruvian taxes; and how would you come on a visa if there is no entity to sponsor you; unless there's a Peruvian branch.
Regards,

Argidd

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