Expatriates in India are liable to pay income-tax and fulfil other obligations such as filing tax returns. At times, their employers may also withhold appropriate income-tax. Expatriates may be subject to taxation on their world-wide income unless they have protection under the ‘Double Taxation Avoidance’ treaty. There may be tax incidence on expatriates who are beneficiaries under any Employee Stock Option schemes.
Expatriate taxation is of special importance to ‘assignment companies’ of transnational corporations in implementation of their tax on social security cost equalization policies. They seek tax withholding reviews for employers to ensure compliance with Indian tax laws.