Expatriate tax
                     Expatriate Tax 
Navigating Indian Tax laws is key to ensuring 
compliance, smooth transitions, and a stress-free 
experience.
Index
1. Who is an Expatriate 
2. Tax Implications
3. Our Services for Expatriates in India
4. Registration Requirement
5. Tax Planning 
6. Withholding Tax and Social Security 
Compliance
7. Obtaining PAN
8. Shadow Payroll Compliance 
9. Income Tax Return Filing 
10. ITCC and NOC
11. Tax Planning
12. Expatriate Tax Consultation
13. About Mercurius
14. How can Mercurius Help You
15. Thank You
Who is an Expatriate? 
•An Expatriate (or expat) lives and works in a country other than where they hold citizenship — 
usually for job-related reasons.
•This move can be self-initiated or arranged by an employer, such as a university, corporation, 
NGO, or government agency.
•Expats typically work abroad for:
• Short-term assignments (1–6 months)
• Long-term projects (6 months to 5 years)
•   After completing their assignment, most expats return to their home country.
•The country where they work is known as the host country.
•Long-term expats often receive:
• Special perks or allowances from their employer (called perquisites)
• Tax responsibilities in the host country
•These benefits and tax rules aim to maintain their quality of life abroad, close to what they 
had back home.
Tax Implications
Taxability of Salary Earned by Expatriate Employees 
in India
Income Slab             Tax Rate 
•Taxability based on Service Location: Salary Up to Rs. 
250,000 Nilincome earned by expatriate employees for 
services performed in India is taxable in India, 5% on income 
regardless of their residential status. Rs. 250,000to 
Rs. 500,000 exceeding INR 
250,000
•Mandatory TDS: Tax Deducted at Source (TDS) 
INR 12,500+ 20% on 
applies to this salary income. Rs. 500,000 to 
INR 10,00,000 Income exceeding 
INR 500,000
•Source of Revenue Irrelevant: The obligation 
to deduct TDS remains, irrespective of where the INR 112,500 + 30% 
salary is paid from. Above INR on Income 1,000,001 exceeding INR 
1,000,000
Our Services for Expatriates in India
We specialize in creating tailored service solutions that make life and tax compliance in 
India seamless for both expatriates and their employers.
Expatriate Tax Obtaining Permanent Account Tax Planning
Consultation Number 
Foreign Regional Registration Offices  Registration Shadow Payroll 
Requirement Compliance
Withholding Tax (TDS) and Social Security 
Income Tax Return Filing
Compliance
Income Tax Clearance Certificate (ITCC)/No Objection Certificate 
 Registration Requirement
•Mandatory FRRO (Foreign Regional Registration Offices) Registration for 
Long-Term Visa Holders: Foreign Nationals entering India on visas exceeding 180 
days must register with the Foreigners Regional Registration Officer (FRRO) within two 
weeks (14 days) of their arrival. 
•Registration Requirement for Accompanying Family: This FRRO registration 
requirement also applies to family members aged 16 and above who are accompanying 
the expatriate to India. 
•Efficient Registration Assistance: We provide support to ensure a smooth and 
efficient FRRO registration process for expatriates and their eligible family members. 
•Support for FRRO Cancellation Upon Departure: When returning home, we also 
offer comprehensive assistance with the necessary FRRO cancellation procedures. 
Withholding Tax (TDS) and Social Security 
Compliance (SSC)
•When companies pay employees who are working in a different country (Expatriates), 
they need to make sure they follow rules about things like social security and 
withholding taxes.
•We help employers handle these important compliance tasks for their expatriate staff. 
•We don't just offer a one-size-fits-all approach; we create solutions that fit the specific 
needs of each employer. 
•Our goal is to provide thorough and tailored support to ensure everything is done 
correctly. 
Obtaining Permanent Account Number 
(PAN) 
•PAN is Essential for Tax Compliance: For Expatriates working in India, 
obtaining a Permanent Account Number (PAN) from the Indian Income Tax 
Department is a fundamental requirement for fulfilling income tax filing obligations. 
•Ensuring Compliance with Tax Regulations: Having a PAN is crucial for 
expatriates to legally file their income tax returns and adhere to all Indian tax laws. 
•Supporting a Smooth Transition: By helping with PAN acquisition, we aim to 
make the initial setup and ongoing tax compliance smoother for expatriates in 
India. 
•Avoiding Potential Penalties: Obtaining a PAN on time helps expatriates avoid 
potential penalties or complications with the Indian tax authorities. 
Shadow Payroll Compliance
•Companies must adhere to regulations concerning income tax, withholding, and 
social security for all employees. 
•This obligation extends to expatriate employees, who are subject to specific rules 
in their home countries. 
•"Shadow payroll compliance" is a service that helps businesses navigate these 
local laws for their expatriate staff. 
•Our support ensures that all necessary tax and social security requirements are 
accurately met for expatriates.
Income Tax Return Filing
•If you're an expatriate working in India, you're required to submit an Indian tax 
return.
•This return needs to detail the income you've earned in India and the taxes you've 
already paid here.
We can help you file your Indian tax returns accurately and on time, so you don't 
miss any deadlines. Additionally, we provide support in correctly reporting any 
assets and financial responsibilities you have outside of India. 
ITCC and NOC
•If an Expatriate stays in India for more than 120 days, they usually need to get an 
Income Tax Clearance Certificate (ITCC) or a No Objection Certificate (NOC) before 
leaving. 
•This certificate confirms that they don't have any unpaid taxes in India. It's typically 
required once their work assignment here is finished. 
•We can assist expatriates in getting this certificate by dealing with the local tax office, 
handling the necessary paperwork, and managing any payments and verifications. 
• We aim to make the process of obtaining these essential clearances as smooth and 
stress-free as possible for expatriates. 
• Tax Planning Specialized Tax Planning for Global Income: Our tax experts provide thorough 
tax planning services specifically designed for individuals and companies with income 
from various countries. 
•Expertise in Double Taxation Avoidance Agreement: We have in-depth 
knowledge and experience in utilizing Double Taxation Avoidance Agreements to our 
clients' advantage. 
•Minimizing Double Taxation: Our goal is to help both expatriates and companies 
legally reduce the burden of being taxed on the same income in two or more 
countries. 
•Optimizing Tax Efficiency: We work to find the most tax-efficient strategies for our 
clients' international income. 
•Navigating International Tax Treaties: We skillfully handle the complexities of 
international tax treaties to lower your tax obligations. 
Expatriate Tax Consultation
•Complexity of Indian Tax for Expatriates: Understanding and adhering to Indian 
Tax regulations can be challenging for individuals working in India from abroad. 
•Comprehensive Entry and Exit Tax Consultations: We offer detailed 
consultations at the beginning and end of an expatriate's assignment in India. 
•Simplifying the Process: We strive to make the tax compliance journey as 
straightforward and hassle-free as possible for our clients. 
•Clarity and Guidance on Filings: We provide clear explanations and step-by-step 
guidance on all necessary tax filings and procedures in India. 
•Updates on Regulatory Changes: We keep our clients informed about any changes 
in       Indian tax laws that might affect their tax obligations. 
About Mercurius
Mercurius is a broad-based professional services firm with clientele in 60+ countries, 
assisting foreign companies with the easy set up and functioning of their businesses in 
India. 
With a thorough knowledge of Indian regulatory structures as well as international 
expectations, we specialize in:
• Company incorporation and structuring
• Regulatory and tax compliance
• Nominee directors and local representation solutions
• Ongoing advisory and post-incorporation support 
We are trusted for our reliability, confidentiality and dedication to simplifying entry 
into India.
How Can Mercurius Help You?
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