Page 40 - Quick Insights Book 2022

International Taxation 8

TAX CONSULTANCY

Expatriate Taxation

Expatriates are people who visit other country for temporary
duration for working in the host country. Many of the
multinational enterprises having presence globally may send
some of its employees to countries where it has presence in
order to assist the local company in their business activities.
This phenomenon is also known as global mobility in the
context of employment.
Income of the expats may be taxable in the country to which
they are temporarily working. In order to determine their
taxability in India, the residential status of such expats will
become relevant. Residential status as per the Income-tax Act,
1961 (‘the Act’) will depend upon the period of stay of such
expat in India.
Some of the solutions, which may be provided by Chartered
Accountants in Expatriate Taxation matters, include:
 Obtaining Tax Registrations – Assist in obtaining the tax
identification number (Permanent Account Number) and
Tax Deduction Account Number (TAN) of the expatriate
from the income-tax authorities;
 Determine Residential Status – Based on the presence
of the expat in India, the residential status of such expat
may be determined under the Act;
 Issuance of technical opinions on questions of law;

 Monthly withholding tax calculation – Assist in computing
the monthly tax liability of the expatriate in order to
enable to the company to withhold applicable taxes in
India including tax equalization amounts for grossing up
tax;
International  Annual Income tax return preparation and filing –

Prepare the computation of income and assist in filing
Taxation the annual income tax return of the expatriate in India.
 Representation before the revenue authorities including
appellate level and tax tribunal and allied assistance on
litigation management including strategic advisory; and

 Evaluating the applicability of the double taxation
avoidance agreement read with the multilateral instrument
(MLI) with the relevant country, in relation to relevant
streams of income.

NON-RESIDENT INDIANS (NRI) TAXATION

Indian citizens or people of Indian origin residing outside
India could be termed as Non-Resident Indian. The era of
globalization has led to large employee movements across

Quick Insights on Professional Opportunities for Chartered Accountants 27