Expatriate Taxation

Globalization has made the movement of personnel across countries more common, with expatriates frequently heading Indian organizations or Indian employees handling sales functions abroad. While these movements are generally driven by business needs, it’s important to consider the tax implications of such arrangements. Depending on the operational structure, contractual terms, and actions of the involved parties, there could be a risk of establishing a Permanent Establishment due to the cross-border movement of personnel.

It’s crucial to carefully evaluate the tax implications for both the employer and the employee in these situations. Issues such as foreign tax credits and the potential for double taxation may arise, depending on the tax laws of both the home and host countries.

We assist clients with income tax matters related to expatriate deputation and secondments, focusing on advisory and compliance requirements.