With a steady increase in the number of foreign nationals employed with multinational corporates coming to India for short/long-term assignments, there came a need to plan and regulate the taxes related to overseas assignments which are particularly complex especially expatriate taxes. Our expatriate tax professionals work to minimize tax burden and compliance risk, help clients decipher the applicability of regulations, and implement sound payroll tax policies and procedures for all relevant countries. We develop strategies for employee transitions and guide to avoid the complexities of the tax system that could result in higher tax costs. Our services include,
- Assistance in registering with the Foreigner Regional Registration Office
- Assistance in addressing Indian tax issues keeping in view the prevailing tax laws
- Determine a professional’s residential status in India during the period of assignment
- Advise on planning the Indian assignment with respect to its commencement, tenure, etc. to enhance tax benefits
- Assistance in reviewing employment contracts from tax and regulatory perspective
- Analyze tax equalization agreements between the employees and the employer from a tax and regulatory perspective
- Analyze taxation of income in the home and host country and advise on the tax impact of the same
- Advise on exemption and tax credit mechanism to determine that income is not doubly taxed under different jurisdictions or appropriate credit for foreign taxes is claimed
1. What is the expatriate tax?
An expatriation tax or emigration tax is a tax on persons who cease to be tax resident in a country.
2. Do expats pay tax in India?
Expats who live in India for 182 days or more in a year are considered to be tax residents and will have to pay tax on their local income. Personal income tax in India is progressive up to 30%, with an additional cess of 3%.
3. Do I need to pay tax in India if I work overseas?
If you reside and work abroad, the NRI income tax you pay will depend on your residential status for the year. If you fit the Resident Indian criteria, your total global income is taxable under Indian tax laws. But if your status for the year is ‘NRI’, only the income earned or accrued in India is taxable