Affiliate system

We are in the process of establishing an affiliate system where we will compensate our affiliates, who could be located anywhere in the world, including India. Our plan is to make most payments in USD via PayPal, but for affiliates based in India, we are considering the option to pay in INR as well. Could you provide detailed guidance on the following aspects: Tax Compliance: What are the tax obligations for us and our affiliates in different jurisdictions, especially considering the cross-border nature of these payments? How does this vary for payments made in USD versus INR, particularly for Indian affiliates? Foreign Exchange Regulations: Under the FEMA guidelines, what are the specific compliance requirements for remitting payments to India in USD and converting them to INR? Are there any limits or reporting requirements we need to be aware of? Legal Implications of Using PayPal: What are the legal considerations of using PayPal for these international transactions, including fees, currency conversion, dispute resolution, and adherence to international financial regulations? Anti-Money Laundering (AML) and KYC Norms: Given the global nature of the affiliate system, how do we ensure compliance with AML regulations? What kind of Know Your Customer (KYC) processes should we implement to verify the identity of our affiliates? Data Privacy and Security Laws: With the handling of personal and payment information of affiliates across borders, what data protection laws (like GDPR in the EU, or similar regulations in other countries) do we need to adhere to? Contractual Agreements with Affiliates: What key elements should be included in our contracts with affiliates to ensure they are legally sound and compliant with international trade laws? Reporting and Compliance in Different Jurisdictions: Are there specific reporting requirements or regulatory compliances we need to follow in different countries, particularly for large transactions or when dealing with a high number of affiliates? Cross-Border Tax Treaties and Implications: How do international tax treaties affect our affiliate payment structure? Are there any specific considerations to take into account to optimize tax efficiency and compliance? Your expertise in these matters would be invaluable in ensuring that our affiliate system is compliant with all necessary legal and financial regulations, both domestically and internationally.