How does Remotify’s business model work legally?

Remotify acts as a Merchant of Record / legal intermediary. It sells services to clients and pays freelancers as subcontractors while handling compliance.

Is Remotify a bank or financial institution?

No. Remotify is not a licensed bank or payment service provider. Financial transactions are carried out through regulated third-party payment partners.

How does Remotify handle DAC7 reporting?

We collect necessary income and identity data, and report freelancer earnings to the Estonian tax authority as required under DAC7.

Am I still responsible for my local taxes?

Yes. Even though Remotify reports on PLATFORM-level income, you remain responsible for declaring your income to your local tax authority.

What identity checks are required (KYC)?

All users must verify their identity via KYC before their payments are processed, to ensure AML compliance and platform safety.

Does Remotify monitor transactions for suspicious activity?

Yes. The platform monitors project and transaction data to detect fraud, unusual patterns, and restricted activities.

What is prohibited activity under Remotify’s compliance policy?

Any activities restricted by financial partners or under international sanctions are disallowed. Remotify enforces these rules across its platform.

How is my personal data protected under GDPR?

Remotify stores and processes your data in compliance with GDPR, using it only under legal obligations or to deliver its services.

How can I get more details about the compliance processes?

For full details, you can refer to Remotify’s KYC & AML policy, Privacy Policy, or contact support to clarify any compliance questions.

Legal Compliance: DAC7 Directive

Q: What is DAC7, and why does it matter?

DAC7 is an EU directive requiring online platforms to report user income to tax authorities. Remotify complies to ensure transparency and legal security.

Legal Compliance: Our Commitment to Transparency and Security

At Remotify, we believe in the highest standards of transparency and legal compliance in financial transactions. This page outlines the fundamental legal frameworks and operational principles that our platform is built upon. Our goal is to provide a secure and regulated environment for both freelancers and businesses.

Our Business Model and Legal Position

Remotify operates as a Merchant of Record and a legal intermediary. This model allows us to offer our users a simple and legally compliant payment process without the need for a financial services license.

Our Role as a Commercial Intermediary: We act as a commercial commissionaire, selling services directly to clients and receiving payments into our corporate account. The delivery of these services is performed by you, our contracted freelancer sub-contractors.
We Are Not a Financial Institution: Since we manage funds as part of our own commercial activities, we are not a licensed bank, financial institution, or payment service provider. All financial transactions are processed by our trusted and regulated third-party payment partners.

Key Compliance Areas

Our platform adheres to international and EU regulations by focusing on the following key areas:

DAC7 Directive and Tax Reporting

DAC7 is an EU directive that requires digital platforms to report user income to tax authorities. Remotify is fully compliant with this directive and reports income earned on our platform to the Estonian Tax and Customs Board (MTA). You remain responsible for your own income tax obligations in your country of residence. We simply handle the platform-level reporting on your behalf.

KYC & AML Policies

Our Anti-Money Laundering (AML) and Know Your Customer (KYC) policies ensure that all transactions on the platform are legitimate and secure.

Identity Verification: All users’ identities are verified before any payment is processed.
Transaction Monitoring: We monitor project and transaction activity to prevent fraud and illegal activities.
Prohibited Activities: We do not permit any activities that are restricted by our financial partners or international sanctions.
For more information: [You can link to your detailed KYC & AML Policy page here]

GDPR and Data Security

The privacy of your personal data is our highest priority. All data we collect is protected and stored in compliance with the EU’s General Data Protection Regulation (GDPR). We only use your data to fulfill our legal obligations and provide you with the best possible service.

For more information: [You can link to your detailed Privacy Policy page here]

Privacy, Transparency, and Reliability

We view legal compliance not as a burden but as a fundamental value of our platform. By adhering to this legal framework, we provide a transparent, secure, and regulated environment for every transaction you make.

If you have any questions or concerns, please do not hesitate to contact us.