India to tax expats in 0% tax countries – will others follow?

A few days ago, the Modi Government in India announced that they would start potentially taxing Indian expats working in 0% tax countries.

This includes Qatar and the UAE and other places in the Middle East, with millions of Indian expats.

They have since tried to clarify their position, however, suggesting that the law won’t affect “Bonafide” workers in the Gulf.

Instead, the proposed law change will change the existing rules and, if enacted, will require expats to spend 240 days of the year outside India, as opposed to the current 182 days, if they want to retain their Non Resident Indian (NRI) status.

Either way, we are witnessing a global trend. In the UK, the previous “90 day rule” is no longer always valid.

These days, there is a sliding scale. If you spend over 16 days in the UK, but less than 90, there can be a “ties test”.

Meaning the more ties you have to the UK, including property , UK pensions and family, you might have to clarify your tax status.

Either way, with the increase in “digital nomads”, formalising your residency status becomes more important, especially as governments look for new revenue sources.

Further reading

The article below looks at some legal ways to reduce your taxes, by moving your residency.

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