About International taxation
International taxation refers to the taxes imposed on individuals and businesses that operate
across national borders. It involves the application of tax laws and regulations in
different countries and can involve issues such as double taxation, transfer pricing, and
tax havens. Double taxation occurs when the same income or capital is subject to tax in two
or more countries, to mitigate this, many countries have entered into double taxation
avoidance agreements (DTAAs) with other countries to establish the rules for how income and
capital should be taxed in each country. The OECD and the UN are among the organizations
that work to develop international tax standards and policies.
International taxation plays a critical role in shaping the business structures of companies
that operate across national borders. It can affect the location of a company’s
headquarters, the way it organizes its operations, and the way it finances its activities,
and can also affect a company’s ability to access global markets.
Scope of International taxation
International taxation in India includes the laws and regulations that govern the taxation of
income earned by businesses and individuals operating across national borders. This includes
the taxation of foreign companies doing business in India, as well as Indian companies and
individuals earning income abroad. Some of the key components of international taxation in
India include:
- Taxation of foreign companies doing business in India: Foreign companies
operating in India are subject to Indian corporate income tax on their Indian-sourced
income. They may also be subject to withholding taxes on certain types of payments made
to non-residents, such as interest, royalties, and dividends.
- Taxation of Indian companies doing business abroad: Indian companies operating
abroad may be subject to foreign corporate income tax on their foreign-sourced income.
They may also be subject to withholding taxes on certain types of payments made to
non-residents, such as interest, royalties, and dividends.
- Taxation of individuals: Indian residents earning income outside of India may be
subject to Indian income tax on their foreign-sourced income. Non-resident Indians
(NRIs) may also be subject to Indian income tax on their Indian-sourced income.
- Double taxation relief: India has entered into Double Taxation Avoidance
Agreements (DTAA) with several countries to avoid double taxation of the same income in
both countries.
- Permanent establishment (PE): The Indian Income Tax Act includes provisions that
define the concept of Permanent Establishment and the taxation of foreign companies with
a PE in India.
- Corporate training
- Foreign tax credit: Indian taxpayers are entitled to claim the foreign tax credit
for taxes paid on foreign-source income.
- Transfer pricing: Indian companies are subject to transfer pricing regulations,
which are designed to prevent companies from shifting profits to subsidiaries located in
low-tax jurisdictions.
- Foreign direct Investment (FDI) in India: Foreign investors making investments in
India are subject to Indian tax laws, including corporate income tax and withholding
taxes on certain types of payments.
Choose us for International taxation services in India
As an international taxation expert in India, we have expertise in the laws, regulations, and
policies that govern taxes imposed on individuals and businesses that operate across
national borders. This includes an in-depth understanding of the Indian tax system, as well
as knowledge of international tax laws and regulations.
As an international tax advisor in Gurgaon, India, we provide a range of services to help
businesses and individuals navigate the complexities of international taxation in the Indian
context. These services include:
- Tax planning and structuring: As an international tax advisor in Gurgaon, India,
one of
the most important services we provide is helping clients develop tax-efficient
structures for their international operations in India. This may include advice on the
best jurisdictions for setting up subsidiaries, the most tax-efficient holding company
structures, and strategies for minimizing the global tax burden of a business in India.
- Transfer pricing: Another important service we provide is helping clients comply
with
transfer pricing regulations in India. These regulations are designed to prevent
companies from shifting profits to subsidiaries located in low-tax jurisdictions. As an
international tax advisor in Gurgaon, India, we will help clients identify and implement
strategies for minimizing their global tax burden while complying with transfer pricing
regulations in India.
- Tax compliance: As an international tax advisor in Gurgaon, India, we help
clients
comply with Indian tax laws and regulations, including the filing of income tax returns
and dealing with Indian tax authorities. This includes providing guidance on tax
compliance for foreign subsidiaries and ensuring that clients are aware of the tax
implications of their operations in different jurisdictions.
- Tax-Efficient repatriation of funds: We assist clients in repatriating funds from
foreign subsidiaries in a tax-efficient manner in India. This may include advice on the
Indian tax implications of different repatriation options and strategies for minimizing
the Indian tax burden of repatriating funds.
- International tax and regulatory compliance: International tax laws and regulations are constantly changing, and we help clients comply with the ever-changing Indian tax laws and regulations. This may include providing guidance on new Indian tax laws and regulations.
