Expats taxation
An “Expatriate” is someone living temporarily or permanently in a country other than their home country, generally working abroad on assignment or permanent/temporary job.
In India, an expatriate can be A foreigner working in India (inbound expatriate) or An Indian working abroad (outbound expatriate). The taxation of such individuals is considered to as “Expatriate Taxation.”
When a business entity is established in India, expatriates are often appointed to key management positions within these companies. Under our Taxation Advisory Services portfolio, our tax advisors offer top-notch expatriate taxation services. These services help expatriates understand various aspects of expatriate taxation and ensure compliance.
Our broad range of services related to expatriate taxation in India includes:
Regulatory Approvals:
- Assistance with registration at the Foreigner Regional Registration Office (FRRO)
- Assistance in obtaining a Permanent Account Number (PAN)
- Assistance in drafting Secondment, Dispatch, and Employment Agreements, considering tax and regulatory implications.
- Analysis of tax equalization agreements and their impact
Statutory Compliances:
- Calculation of taxable income and tax liabilities for the Employer Company
- Coordination and compilation of global income and foreign assets for expatriate income tax return disclosures
- Preparation and submission of withholding tax returns, along with assistance in issuing withholding tax certificates to expatriates
- Preparation and filing of individual income tax returns for expatriates
Consulting and Advisory Services:
- Advisory on determining the Residential Status of expatriates
- Guidance on the taxability of various income sources in India
- Advisory on exemption eligibility and tax credit mechanisms
- Consultation on tax implications under Tax Treaties or Double Tax Avoidance Agreements between India and the expatriate’s home country
Exit Approvals
- Assistance with the surrender of “Residential Permits” and obtaining “Exit Visas” from the FRRO office at the time of final departure from India
- Guidance in obtaining a No Objection Certificate (NOC) or Income Tax Clearance Certificate (ITCC) from the Income Tax Authorities for expatriates departing from India permanently
- Support in securing a certificate of coverage for outbound expatriates
Representation Services
- Handling income tax scrutiny assessments and penalty proceedings for expatriates, including representation before Income Tax Authorities
- Managing income tax appeal proceedings for expatriates and representing them before Income Tax Appellate Authorities
