The Institute of Chartered Accountants of India (ICAI), through its Committee on International Taxation, has released the Sixth Edition (Revised 2025) of the Technical Guide on Expatriates Taxation, providing an updated and comprehensive reference for professionals handling taxation matters related to inbound and outbound expatriates.
Key Highlights:
- Updated for Latest Taxation & Regulatory Changes
The revised publication integrates significant amendments including:
- Revised provisions on capital gains taxation, including changes in indexation rules.
- Revised slab rates under the default tax regime (Section 115BAC) which is now mandatory unless opted out.
- Updated provisions relating to scope of income, residential status, and deemed residency—key determinants for expatriate taxability.
- Comprehensive Coverage for Cross-Border Mobility
The Guide extensively covers:
- Determination of residential status, including special rules for Indian citizens and Persons of Indian Origin visiting India.
- Taxability of salary, allowances, reimbursements, and perquisites for expatriate employees, including income received outside India.
- Obligations under Section 195 regarding withholding tax on salary paid by foreign employers.
- Updated guidance on Form 10F, Tax Residency Certificate requirements, and compliance through electronic filing.
- Integration of Social Security & International Agreements
Detailed analysis has been provided on:
- Provident Fund obligations for International Workers under the EPF Act.
- Eligibility and withdrawal mechanisms under India’s bilateral Social Security Agreements (SSAs).
- Employer obligations for contributions and compliance under the Indian social security framework.
- Coverage of FEMA, Black Money Act & Other Legal Requirements
The revised edition incorporates:
- Clarifications on exchange control regulations, including permissible remittances, bank accounts for expatriates, and FEMA-based residential status.
- Mandatory reporting and disclosure requirements under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015.
- Enhanced Guidance on Assignment Structures
The Guide categorizes expatriate engagements such as:
- Short-term business visits
- Short-term, medium-term and long-term assignments
- Secondment/ deputation structures
- Permanent relocation
For each category, specific tax implications, PE risk evaluations, and withholding obligations have been elaborated through detailed tables and examples.
- President ICAI Emphasizes its Importance
In his foreword, ICAI President CA. Charanjot Singh Nanda highlighted that the revised edition will enable professionals to “stay abreast of evolving international tax dynamics and strengthen compliance in an increasingly globalized workplace.”
- Collaborative Contribution by Subject Experts
The publication reflects extensive contributions of the Chairman, Vice-Chairman, committee members, and domain experts, acknowledging their critical involvement in bringing updated, practitioner-oriented guidance.
Conclusion
The release of the Technical Guide on Expatriates Taxation (Revised 2025) marks a significant step in enhancing India’s tax administration framework for global mobility. It is expected to serve as a vital tool for chartered accountants, tax practitioners, multinational organizations, and expatriate employees navigating complex cross-border tax challenges.
The Handbook can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/01/Technical-Guide-publication-on-Expatriates-Taxation.pdf
