Expatriate Services

Expatriate Taxation Services

“Expatriate” or “Expat” is a person residing in a country temporarily or permanently which is different from his/her home country i.e. the country in which he/she is a resident. Usually this term is used in case of technicians and professionals sent by their companies to their associated enterprises or foreign subsidiaries. “Tax equalisation” is a measure used to neutralize the impact of taxation on an expatriate worker in respect of his/her assignment in a country where he is not a resident. “Social security agreement” On 1 October 2008, the Ministry of Labour and Employment, government of India notified social security schemes for international workers (IWs).

Expatriates often work in a country or they are deputed to another country wherein the tax brackets, credits, deductions immensely differ from their home country. This creates a dicey situation for an Expat. Either the expat shall end up paying more taxes or take the benefit of the tax situation by paying comparatively lower taxes.

With new Country comes new challenges. Are you compliant with the laws? Are you registered? Are you paying right taxes? Are you filing appropriate return? Are you claiming correct credit? Are you aware about the Social Security Contribution? Are your taxed equalised?

Our services include the following:

​Planning

• Comprehensive Tax planning for the Indian assignment with respect to its commencement, tenure etc., taxability as per applicable regulations to enhance tax benefits
• Determination of best possible tax structure

Drafting of Agreement from tax and regulatory perspective

• Drafting of employment contracts from tax and regulatory perspective
• Drafting of tax equalisation agreements between the employees and the employer

Registration and Compliance

• Determine a residential status in India during the period of assignment
• Registration with Foreigners Regional Registration Office (FRRO)
• Maintenance of complete Expatriate payroll – Calculation of monthly Tax to be deducted by employer, filing of return, deposit of tax etc.
• Handholding for compliance requirements from their time of entry to their departure from India including tax registration, deregistration, filings, etc.
• Determine taxability of employer’s and employee’s contributions to retiral benefits, whether mandatory or otherwise, during the Indian assignment.
• Helping the expatriate in opening and maintaining account and remittances

Advisory

• Assistance in addressing Indian tax issues keeping in view the prevailing tax laws
• 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
• Availing of benefits under Social Security Agreements signed by India with other countries.
• Analyse taxation of income in the home and host country and advise on the tax impact of the same.

Training

• We shall conduct training for Expat to make them understand the basics of Indian regulations that they should know.