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Are you an expat, working or planning to work in India, or perhaps an organization looking for tax compliance for its expat employees in India? Individuals and enterprises need to understand Indian law regarding expatriates for smooth tax compliance, transition, and hassle-free experiences.
Understanding Expatriates: Work Abroad and Benefits Explained
An expatriate is a person who resides in a country other than the country in which they hold citizenship, typically for temporary employment-related purposes. This transfer may occur either independently or as part of a work-related assignment facilitated by an employer, which may include an institution such as a university, corporation, non-governmental organization, or governmental entity.
Expatriates are people who work in a different country for a short time, usually 1-6 months, or a longer time, like six months to 5 years, and then return to their home country after their assignments are over. The visiting country is also referred to as a host country.
Expats on long-term assignments are generally qualified for various benefits in the form of perquisites provided by the company, along with a tax burden in the host country. These compliances are meant to ensure that the workers’ standard of living in their new country is equal to that of their native country.
Taxability of Salary Income for Expatriate Employees in India
Irrespective of residential status, income is deemed to be taxable in India when it is earned as a salary for services rendered in India by expatriate personnel. Along with it, it is mandatory to pay tax deducted at Source (TDS) regardless of the source of revenue.
Our Services for Expatriates in India
We provide customized service solutions for expatriates and their employers, ensuring smooth stays and easy tax compliance matters in India.
Expatriate Tax Consultation
Expatriates working in India are subject to various tax compliances and filings. We offer entry and exit tax consultations, including the assessment of the individual's residential status.
Tax Planning
Our tax professionals offer comprehensive tax planning services tailored explicitly for income from multiple countries. Leveraging our deep expertise in Double Taxation Avoidance Agreements (DTAA), we ensure that both expats and companies can minimize double taxation and optimize their tax efficiency. We navigate the complexities of international tax treaties to reduce your tax liabilities while ensuring full compliance with all regulations.
Obtaining Permanent Account Number (PAN)
Expatriates must get a Permanent Account Number (PAN) issued by the Income Tax authorities in order to comply with the income tax filing requirements. We facilitate the acquisition of PAN numbers for expatriates in India.
Foreign Regional Registration Offices (FRRO) Registration Requirement
Foreign nationals entering India on a long-term visa that lasts more than 180 days are required to complete their FRRO registration within 14 days of their arrival. This requirement extends to family members aged 16 and above accompanying the expatriate. We ensure efficient FRRO registration and offer comprehensive support for cancellation on your return to your home country.
Shadow Payroll Compliance
Employers need to ensure that they comply with formalities such as income tax, withholding, and social security regulations. We help to provide shadow payroll compliance for expatriates to align with local laws.
Withholding Tax (TDS) and Social Security Compliance (TDS)
The employer ensures certain compliance for expatriates who work with them, including social security and withholding tax compliance while paying expatriates. We assist the employer with comprehensive and custom solutions as per their requirements.
Income Tax Return Filing
Expatriates must file a tax return in India disclosing income earned and taxes paid in India. We assist in filing tax returns for expatriates before due dates and support in disclosing overseas assets and liabilities.
Income Tax Clearance Certificate (ITCC)/No Objection Certificate (NOC)
Expatriates must get a tax clearance certificate if their stay in India exceeds 120 days to affirm the absence of outstanding tax liabilities. It is required in case they depart after the completion of their assignment. We can help expats obtain the certificate with the following support.
- Contacting the local Income Tax Office
- Documentation requirements for NOC
- Payment of dues and verification process
- Hassle-free process for obtaining necessary clearances
Mercurius: Your Expert Partner for Expat Tax in India
Navigating expat tax in India may seem complex, but with Mercurius by your side, you’ll have expert guidance through every step of the process, whether you’re on a short-term or long-term assignment in India.
Expertise
Mercurius's tax consultants are experienced tax professionals who are well-versed in the latest tax laws and regulations. Clients can depend on us for accurate, precise, and up-to-date advice to ensure compliance and optimize their taxes.
Personalized Service
We understand that every individual’s financial requirements are unique. Our services are tailored to match your specific needs and objectives.
Proactive Approach
With tax consulting services at Mercurius, you stay a step ahead of changes in tax legislation, and we proactively advise you on how to manage your tax affairs.
Comprehensive Support
We provide a full range of personal tax services, such as filing tax returns, preparation for tax planning, and dispute resolution.
Client-Centric Focus
Your satisfaction is our priority. We are committed to providing exceptional service and building long-term relationships with our clients.
Additional Support
- Contacting the local Income Tax Office
- Documentation requirements for NOC
- Payment of dues and verification process
- Our expertise ensures a hassle-free process for obtaining necessary clearances.
Mercurius: Your Expert Partner for Expat Tax in India
Navigating expat tax in India can feel overwhelming, but it doesn’t have to be. Mercurius specializes in guiding you through the complexities of tax and regulatory matters for short-term or long-term work assignments in India. Our services include analyzing social tax consequences, determining tax residency status, exploring expat concessions, fulfilling return filing obligations, and more.
Contact us today to simplify your expat tax journey in India.
FAQs
The procedure for registration varies slightly from state to state and is somewhat dependent on whether you’re forming an L.L.C. or a C-corp. Here are some of the basic steps and requirements:
- Choose a unique name as a trademark
- Register with state agencies
- Get a registered agent
- File for foreign qualification
- File state documents and fees
- Register with local agencies
- Open a business bank account
- Right of the compliance function to openly disclose its findings and views to senior management, board/ ACB or board committee.
The procedure for registration varies slightly from state to state and is somewhat dependent on whether you’re forming an L.L.C. or a C-corp. Here are some of the basic steps and requirements:
- Choose a unique name as a trademark
- Register with state agencies
- Get a registered agent
- File for foreign qualification
- File state documents and fees
- Register with local agencies
- Open a business bank account
- Right of the compliance function to openly disclose its findings and views to senior management, board/ ACB or board committee.
The procedure for registration varies slightly from state to state and is somewhat dependent on whether you’re forming an L.L.C. or a C-corp. Here are some of the basic steps and requirements:
- Choose a unique name as a trademark
- Register with state agencies
- Get a registered agent
- File for foreign qualification
- File state documents and fees
- Register with local agencies
- Open a business bank account
- Right of the compliance function to openly disclose its findings and views to senior management, board/ ACB or board committee.
The procedure for registration varies slightly from state to state and is somewhat dependent on whether you’re forming an L.L.C. or a C-corp. Here are some of the basic steps and requirements:
- Choose a unique name as a trademark
- Register with state agencies
- Get a registered agent
- File for foreign qualification
- File state documents and fees
- Register with local agencies
- Open a business bank account
- Right of the compliance function to openly disclose its findings and views to senior management, board/ ACB or board committee.
