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Outbound Assignments

Outbound Assignments

Globalisation is prompting both large and small companies to look abroad for growth. At the same time, fierce competition is forcing them to drive down costs. The foray into the new global environment poses unknown challenges for organisations with international assignment programmes.

The last few years have witnessed many more Indian companies deputing their employees to their overseas operations. Such companies and their employees need to deal with tax and regulatory issues in respect of secondment of employees. There is enhanced vigilance by tax authorities in India and overseas. The complexities in the tax systems result in higher tax costs, compliance issues and double taxation issues in relation to outbound assignees that need resolution.

Employers need to analyse the tax positions both for employees and themselves. The presence of employees in overseas jurisdiction may result in taxable presence of the Indian entity in the said jurisdiction.

Key service offerings: 

  • Assistance in formulating global mobility policies including secondment/assignment arrangements
  • Assistance in addressing cross-border tax issues with the help of our international network to reduce the tax impact and avoid double taxation of employment income
  • Advise in respect of departure planning to mitigate tax impact
  • Assistance in determining tax residency in India and overseas in the year of departure/arrival
  • Plan multijurisdictional tax credit Advise on the re-entry of the employee into India
  • Advise on implementation of hypothetical tax and tax equalisation policies 
  • Advise on tax credit mechanism to avail the appropriate credit and mitigate double taxation of income in different jurisdictions.

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