India Signs Tax Treaties with Belgium, France and Germany

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Sept. 16 – The Indian government has signed social security agreements with Belgium, France and Germany to avoid double tax discrimination and compliance costs for international executives operating in between their home country and India.

The agreement provides for exemptions from contributions to be made in the host country in cases involving short term deputation (up to five years). Contributions do however have to be made if the individual remains in the host country for longer than five years and has local employment. A new Detachment Certificate of Certificate of Coverage is required to obtain exemption.

The agreement with Belgium commences from Sept. 1, 2009, with Germany from Oct. 1, 2009, while no date has yet been set for France. India is also currently discussing social security agreements with the United States, Australia, the Czech Republic, Luxembourg, Holland, Hungary, Norway, Sweden and Switzerland.

Social security agreements are useful tools for executives working in India, helping reduce the burden of potential tax payment upkeep in two countries. They can result in an increase in take home pay by the executive if utilized properly.

Expatriates in India requiring advice on social security agreements and double tax avoidance may contact Dezan Shira & Associates India at india@dezshira.com for assistance or view our web site.

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