Going abroad for employment? Manage your taxes & social security
If you are planning to go out, be aware of the terms and conditions of your employment contract and your company’s global mobility policy well in advance. You may get introduced to new terms such as tax equalisation, hypothetical tax, relocation payouts and benefits, which are important to understand given the monetary impact they may have on you.
A basic research around the tax rates of the host country and the social security regime will be very useful. There is often a misconception with shorter assignments that if the number of days of stay in the host country is less than 182 days, there is no tax liability in that country. This may not always be true and depends on the variety of variable factors, such as place of payment of salary, you and your employer’s residential status in India and the host country, and so on. Remember to file your host country tax return on time. Other than ensuring compliance, this return may also be a ticket to get some tax benefits back home in case your income is getting doubly
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