Insights Of NRI & Expatriate Taxation | FEMA Compliances | DTAA

Insights Of NRI & Expatriate Taxation

Any Expatriate, NRI, and PIO doing any business transactions or employed in India need to understand and follow the Indian Laws and orders associated with the foreign exchange policies. The common issue faced by the NRIs or any Expatriate is the compliance with the International Taxation system in India.

As per the Regulations of the ITA (Income Tax Act), the tax liable on an expatriate depends upon the residential status, not judged by the nationality of the expatriate.

 

To comply with various International Taxation laws and regulations, Expatriates trust reliable and professional services. We have a team of experts who provides efficient solutions to expatriate taxation problems. Our tax consultant offers distinct and fruitful strategies to handle any tax-related matters such as withholding obligations, Dual Taxation, Tax compliance issues, foreign bank report filing, Language barriers, and several tax liabilities.

The Scope Of Income Taxability For Expatriate

The scope of Income Taxability for expatriates depends on the residential status, but in some instances, it’s also determined by the DTAA regulations and laws of the respective country. Sometimes, an expatriate may reside in both the countries; at that time, the residential status will be judged under the Regulations and taxation laws of both countries. 

We provide advisory and compliance services to NRI clients for all sorts of issues associated with expatriate taxation and residents who would like to set up their business in India. Here are the brief description of work opportunities and tax compliance services for expatriates:

Generally, Expatriates have different sources of income such as the interest incurred from bank deposits, Capital Gains and Rental income, Salaries etc. As per the guidelines of the Income Tax Act, the NRI needs to pay the taxes in India on all sources of income they earn in India. And our professionals help expatriate in the following matters:

  • Assisting in Income Tax return filing for expatriates in India.
  • Guiding and providing advisory services in claiming back refund after filing TDS.
  • Providing Proper knowledge about DTAA (Double Taxation Avoidance Agreement) to save any extra taxes.
  • Protecting against the income tax department litigation.
  • WRT tax planning and consultancy services to minimise the tax burden.

Any NRIs or Expatriates who have businesses, bank account, and property in India, we offer complete financial planning services to the clients stated below:

  • We supervise, record, and provide complete investment reports.
  • Our responsible expatriate taxation consultants provide solutions for the liquidation of property.
  • We assist in any sort of investment and property sales.
  • Our trustworthy expertise maintains every regulatory and banking formality.
  • We offer distinct planning for financial transactions to minimise the tax liabilities.
  • We look after the NRI income tax services return.

Expatriates who hold assets such as property, investments, etc and are willing to sell the same or liquidate the value of the assets we help them by following a fruitful tax-effective process.

To perform this operation, we facilitate them from the income tax clearance and other RBI Regulations. Not only that, but we also help NRIs to submit the 15CA & 15CB Form of the Income Tax authority.

Any foreign establishments or Individual planning to set up a business in India, we assist them with the following services:

  • We offer a fruitful strategy and help to develop a financial model.
  • Our expertise, explore the suitable location after several observations according to the business needs.
  • Identify and judge potential partners after doing a proper diligence review.
  • Manage all the regulatory approvals.
  • Allocate finances by preparing a complete project report and liaison with financial institutions, banks, other joint venture organisations.
  • Assisting in the incorporation of an organisation in India.

A returning expatriate always tries to re-evaluate or retain the assets such as property, investments etc. and look forward to reinvesting in any other foreign country. Thus, we assist them with these services

  • Facilitate clearance is essential to hold any assets in India under the FEMA Regulations from RBI.
  • Assisting in the revaluation of property or sales proceeds of any assets outside the country.
  • We provide advisory services for Residential status under FEMA guidelines and Income Taxation Services.
  • We have our experienced professionals who offer efficient expatriate taxation consultancy services.

A new expatriate or any emigrating Indian has a tendency to retain the assets such as business property, investments etc. and return the sale proceeds/income thereof. We help them to perform these functions:

  • Supervise, record, and report on the investments in India.
  • A definite plan to minimise the tax liability.
  • Facilitate clearance is essential to hold any assets in India under the FEMA Regulations from RBI.
What people say about us

FAQs on Expatriates Taxation

To monitor the business operations, a foreign company deploys its employees for a specific period during the time of business set up in India and to manage business in India. That employee is considered as an Expatriate, though it’s not mentioned under the regulations of the ITA- Income Tax Act. Basically, an NRI who’s been working in India for 6 months upto 5years.

Expatriate taxation is required to perform the business operations for NRIs in India. Thus, we offer expatriate consulting services to NRIs to check if they qualify for foreign tax relaxation. To analyse the foreign tax credit eligibility and Allocate finances by preparing a complete project report and liaison with financial institutions, banks, other joint venture organisations. A proper tax planning will help an expatriate to reduce the risks of dual taxation.

Under the regulations of section 9(1)(ii) income tax act, the expatriate is liable to pay the taxes for the services rendered by them in India. It is accountable for income under the head salaries. The scope of income for an expatriate is judged by the residential status. It won’t make any difference in the Income earned by NRI and the tax liabilities associated with it. TDS will also be chargeable under the regulations of the Income Tax Act. Even the salary earned by NRI in a foreign currency will be converted to Indian rupees for the tax deduction in some instances.

A transaction that has been carried out by two non-residents involving Indian assets or income accruing form India is also covered under the ambit of international transaction.

Any company that’s running the business in India and employee NRIs is liable to pay the taxes as per the regulations of the Income Tax Act. Further some common hurdles faced by the expatriates also include diverse culture, withholding obligations, tax compliance issues, Dual Taxation problems, foreign bank report filings, and language barrier issues. Thus, we offer a complete set of expatriate taxation compliance services to reduce the tax burden of NRIs in India.

Why Choose us

Client Centric Approach

Client is the key driver of our service offerings.  Our approach to service offerings is based on a client centric and customised approach.  Our specialised teams are a mix of technical and industry experience in order to serve clientele for their specific needs.

Quick
Turnaround

We always endeavour for a quick turnaround time to serve our clientele.  We are supported by an experienced and client focussed support teams to offer timely services to our clientele. In case of any business exigencies and time sensitive service requirements, you can always count on us.

Team
Work

We have built high performing teams supported by strong work ethic. Our team is a mix of experts, professionals and support staff from technical and varied academic, cultural, social and ethnic backgrounds.  We believe that this diversification plays a vital role in motivating the team into High Performing Teams.

Open
Communications

We believe that open communication is the core principle in order to demonstrate trust, build long lasting and valuable relationships with clientele.  We are committed to ensuring transparency in communication, service offerings and delivery. 

Driving quality in delivery

Our service offerings are driven by quality and reviews at every level. We strive to provide a qualitative and value-added delivery to our clientele. At all times, we endeavour to provide exceptional client service by meeting client expectations and driving client satisfaction.

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Finance Act, 2020 has proposed to eradicate the provisions of DDT for dividend provided on or after 01.04.2020 and therefore, dividend income and income from units will be taxable in hands of recipients.
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