Advice on Taxation While Splitting Time in US and India
Posted: Mon Apr 21, 2008 5:26 am
I am a USC with OCI and am working in US. I am planning to R2I next year but will continue to work for my present employer (which has no office in India) remotely, while earning in US Dollars. I would be working in US for approx. 90 days and the rest (270 days) would be in India in a given year. Am I liable to pay taxes both in India and in US?
If so, how can I structure a contract with my employer that would minimize my tax burden? They are willing to work with me to get set in India. They are also open to setting up a branch in India where I would be the sole employee. Would it be better if I made myself an independent consultant from India and have my current employer as the sole client? Any other tax saving strategy I should consider? I have to present my case to my employer this week and so I am hoping to know the best case scenario for both of us.
If so, how can I structure a contract with my employer that would minimize my tax burden? They are willing to work with me to get set in India. They are also open to setting up a branch in India where I would be the sole employee. Would it be better if I made myself an independent consultant from India and have my current employer as the sole client? Any other tax saving strategy I should consider? I have to present my case to my employer this week and so I am hoping to know the best case scenario for both of us.
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