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Expatriates in India face new tax rules

Subsidiaries of foreign companies based in India will now have to tax their expatriate workers at source, as they do their local employees, the Telegraph India has reported.

The decision by the Indian supreme high court has ended an ongoing disagreement between the county’s tax officials and foreign firms, who have paid only a percentage of their workers’ wages locally.

Employers of expatriates will also now not be allowed to pay tax in advance.

Firms will now tax wages paid outside of the country "and add it to the tax that was being deducted on salaries paid in India for services rendered here", PricewaterhouseCoopers’ executive director Rahul Garg told the paper.

India is one of several countries that were heavily influenced by a British colonial presence. Expatriates could consider taking out international health insurance when living in India and may be able to get by easily in the country’s medical system, as English is widely spoken.

A study by the Institute for Pubic Policy Research in 2006 estimated there were at least 32,000 Britons living in India, attracted mainly by the country’s booming economy.

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