4 things to keep in mind when working for international clients
Being a freelancer means that you have the freedom to work anywhere in the world. More and more people are becoming digital nomads. Because who wouldn’t want to work from a hammock overlooking a beach in paradise?
This means that there are far more opportunities to land international gigs. And if you are lucky enough to land a well-paid job for a client abroad (because, you know, you’re *that* good!)…
…you could be one step closer to building your global empire.
But, before you sign on the dotted line, here are a few things to consider before getting down to business.
1. The exchange rate
You might think that a job paying in pounds or dollars will make you rich when compared to the South African rand. It’s important, however, to make sure that what they are offering still looks appealing once it has been converted into local currency. It’s also worth noting the exchange rate is in constant flux, so you will never be sure exactly how much you will be getting out once payment has been made.
2. Your payment method
Unlike transferring cash between local bank accounts, which can be done quickly and easily, there is a lot more admin and hassle when it comes to getting your hands on your overseas cash. Because of this, many freelancers opt to use payment gateways, such as PayPal, which can be used in conjunction with an FNB account to claim wages being paid from abroad.
3. Your tax requirements
Freelancers in South Africa are required, by law, to pay 25% of their earnings to SARS as tax. But there are different laws pertaining to income which is coming into your bank account from abroad. It’s crucial that you brush up on these regulations and pay provisional tax twice a year to avoid problems.
4. The time zones
It would be unrealistic to expect that, when you are working for international clients, you can still maintain a regular nine-to-five working day in SA, especially if time zones don’t have much of an overlap. This might require restructuring your day so that you can be online and available during your client’s working hours to keep the lines of communication open.
