UK refuses India’s plea for visas in trade deal talks

[TriptiD]

For the highlighted portion.
I worked more than 5 years in UK on a work permit.
You have to pay tax in UK for the income you have. But UK has double taxation with india. so in a financial year if you stay more than 6 months in any country then you have to pay tax there.

He is confused between temporary business visas and work permits. No one on a work permit ( which is what India is asking for) can work tax free .

 

[Ali_Baba]

For the highlighted portion.
I worked more than 5 years in UK on a work permit.
You have to pay tax in UK for the income you have. But UK has double taxation with india. so in a financial year if you stay more than 6 months in any country then you have to pay tax there.

It comes down to how you come here, how long and the nature of the relationship with the employer in the UK and the employer in India.

if you come to the UK and receive pay here, but not in India - then you should be pay all UK taxes. That is right and fair.

But if you came to the UK via a Visa via a 'company' for a temporary stay and you still continue to receive a seperate salary in India aswell - then your employer is meant to do 'tax equalisation' so that you dont pay anymore tax than had you remained in the India and your benefits in India are meant to stay the same, and the cost of that difference falls on your employer, not you. It is the cost of doing business. Without knowing the full scenario - difficult to say what is the ask or scenario.

I have done the expat thing in the Germany and where i received a UK salary(on which I paid UK taxes) and a Germany salary(to basically cover expenses) for which I also paid Germany taxes. In the event that the Germany considered my UK income for Germany taxes also, then that was paid aswell. But i then went through a tax equalisation process so that i did not have to pay "any more tax than had i stayed in the UK" - the costs of the Germany salary and for taxes was totally on my employer ...

 

[TriptiD]

It comes down to how you come here, how long and the nature of the relationship with the employer in the UK and the employer in India.

if you come to the UK and receive pay here, but not in India - then you should be pay all UK taxes. That is right and fair.

But if you came to the UK via a Visa via a 'company' for a temporary stay and you still continue to receive a seperate salary in India aswell - then your employer is meant to do 'tax equalisation' so that you dont pay anymore tax than had you remained in the India and your benefits in India are meant to stay the same, and the cost of that difference falls on your employer, not you. It is the cost of doing business. Without knowing the full scenario - difficult to say what is the ask or scenario.

I have done the expat thing in the Germany and where i received a UK salary(on which I paid UK taxes) and a Germany salary(to basically cover expenses) for which I also paid Germany taxes. In the event that the Germany considered my UK income for Germany taxes also, then that was paid aswell. But i then went through a tax equalisation process so that i did not have to pay "any more tax than had i stayed in the UK" - the costs of the Germany salary and for taxes was totally on my employer ...

That is quite an unusual arrangement where you are getting paid a salary in two countries . Typically, what happens is:
1) If you are on a business trip that can vary from a few days to a few months, you are paid in your home country and the company takes care of your expenses in the foreign country. You may be paid a daily allowance for miscellaneous expenses, but not a salary in the foreign country if you are on a business trip.
2) For a longer term foreign assignment requested by you or if the salary is higher in the foreign country , you will typically just be paid as a local employee in the foreign country
3) for a longer term assignment requested by the company and if the salary levels are lower/comparable in the foreign country, you will be on an expat package - meaning you will be paid in the home country. On top of that, the company will directly pay for your accommodation and other expenses , schooling for kids, healthcare in the foreign country, cost of tickets back to your home country for you and your family a couple of times a year etc. However, the salary will be paid only in the home country. If there are tax implications( payable by you) on account of the expat package, the company will gross up your domestic salary so that your net take home salary remains unchanged.