Tax equalization and foreign tax credit

Providing with calculation for tax equalization and foreign tax credit in cases of mobile employees

Estimated Time

1-15 days

Price Range

INR 12,000-20,000/man day

Scope of Work

1. Review of employment or deputation contract. 2. Tax paid in the two jurisdictions and tax computation in the two jurisdictions. 3. Review of different components of pay to the expatriate in t he two jurisdictions. 4. Review of tax laws in India and the Double Tax Avoidance Agreement with the other jurisdiction, if any. 5. Basic analysis of the tax law of the other jurisdiction to understand the tax computation of the other jurisdiction. 6. Computation of foreign tax credit as per the applicable law and net tax liability to arrive at the hypothetical tax amount. 7. Year- end reconciliations.

Documents Required

1. Service/ employment and deputation contract , as applicable 2. Reporting structure and profile of the employee 3. Residential status of the employee in the two jurisdictions 4. Details of income received and computation in the two jurisdictions with tax return filed in the foreign jurisdiction, if any 5. Tax Residency certificate of the expatriate issued from the foreign jurisdiction 6. Discussion with the expatriate, management as necessary