Expatriate Taxation

Expatriate Taxation – Expatriate taxation deals with the tax obligations of individuals living or working outside their home country. It determines how income earned abroad is taxed, based on factors like residency status, source of income, and applicable Double Taxation Agreements (DTAs) between countries. Expatriates may be subject to taxation in both their home and host countries, but relief is often provided through foreign tax credits, exemptions, or treaty benefits to avoid double taxation.

Example: An Indian employee working in Singapore may have to pay taxes in Singapore on income earned there, but may also claim relief under the India–Singapore DTA to avoid double taxation.