For businesses paying independent contractors in Bangladesh
Best payment methods for Bangladeshi contractors:
Key requirements:
Bangladesh has a rapidly growing tech and outsourcing sector. If you're hiring contractors in Bangladesh, you need to understand:
| Method | Cost | Speed | Best For |
|---|---|---|---|
| Wise | $3-$10 | 1-3 days | Regular payments, best exchange rates |
| Payoneer | $5-$12 | 1-3 days | Very popular with Bangladeshi freelancers |
| PayPal | Limited | N/A | Restricted in Bangladesh (send only, no withdrawal) |
| Bank Transfer | $20-$40 | 3-7 days | Large amounts, traditional method |
Why Wise and Payoneer work best for Bangladesh:
Bangladeshi contractors strongly prefer USD over BDT for stability and international purchasing power.
Pay in USD (recommended):
Pay in BDT only if:
Pro tip: Almost all Bangladeshi tech contractors prefer USD. Always confirm currency preference before setting up payments.
TIN is Bangladesh's tax identification number issued by the National Board of Revenue (NBR).
Important: As a foreign company paying a Bangladeshi contractor, you typically don't have tax withholding obligations in Bangladesh. The contractor handles their own NBR tax compliance. Consult with a tax professional for your specific situation.
Problem: PayPal is restricted in Bangladesh. Contractors can receive payments but face difficulties withdrawing funds.
Solution: Use Wise or Payoneer instead. Both are widely accepted and contractors can easily withdraw to local banks.
Problem: Most contractors prefer USD for stability and international purchasing power.
Solution: Always ask contractor's currency preference. Most will prefer USD.
Problem: Contractor may not be properly registered with NBR.
Solution: Request TIN certificate before first payment.
Kontrable is built specifically for managing international contractors:
A: PayPal is restricted in Bangladesh. While contractors can receive payments, they face difficulties withdrawing funds. Use Wise or Payoneer instead.
A: Almost all Bangladeshi contractors prefer USD for stability and international purchasing power. Always confirm with your contractor.
A: Wise and Payoneer are both excellent choices. Wise typically has lower fees ($3-$10), while Payoneer is very popular among Bangladeshi freelancers.
A: No. EOR is for employees. Bangladeshi contractors handle their own NBR tax compliance. You just need a good payment method (Wise/Payoneer) and contractor management tool (Kontrable).
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