Expatriate Tax in India

Global Mobility. Local Tax Clarity.

As multinational organisations move employees across borders for assignments in India, those employees and their employers face a distinct set of tax obligations shaped by residential status, treaty provisions and social security arrangements. Expatriate taxation covers questions such as how much of an assignee's income is taxable in India, what withholding obligations apply to the employer, and how relief from double taxation can be claimed. Getting this right protects both the individual and the organisation from compliance exposure during and after the assignment.

Why This Matters

Incorrect determination of residential status or taxable income can lead to under-reporting, interest and penalties, while overly conservative positions can result in employees or employers paying more tax than necessary. Cross-border assignments also carry the risk of creating an unintended permanent establishment or triggering base erosion concerns for the employer if secondment arrangements are not structured carefully. Addressing these issues before an assignment begins avoids costly corrections later.

How We Help

Assignment Structuring and Planning

We review proposed secondment and assignment structures to manage tax and permanent establishment risk, aligning the arrangement with both Indian law and the relevant tax treaty.

Compliance and Registration Support

We assist with registrations, work authorisation formalities and other compliance steps that arise when an expatriate takes up an assignment in India.

Tax Computation and Return Filing

Our team computes withholding tax obligations, prepares income tax returns for assignees, and advises on claiming foreign tax credit or treaty relief where applicable.

Exit Formalities and Representation

We support employees and employers through exit compliance, including tax clearance procedures, and represent clients before tax authorities where assessments or queries arise.

Who Needs This

• Multinational companies sending employees on assignment to India
• Foreign nationals working in India under secondment arrangements
• Indian companies hosting inbound expatriate employees
• Organisations reviewing global mobility policies for tax efficiency

Our Approach

We look at each assignment holistically, considering the employer's structure, the treaty position and the individual's personal circumstances before recommending a course of action. Our guidance stays practical and current, helping both companies and assignees meet their obligations while managing the overall tax cost of the arrangement.

Get in Touch

To discuss how we can support you with expatriate tax in India, write to us at info@agarwalurs.com.