VIAAN
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Domestic Taxation
The Indian tax system is one of the complex piece of legislation. Frequent changes in Indian direct tax laws, (multiple changes every year), only add to the complexities. Viaan Consulting keeps abreast of all such changes made in Direct Tax Laws, so as to provide quality services to its clients
Due to our in-depth research in the field of Direct Taxes, locally as well as internationally, as well as on account of its past experience with the Indian Tax authorities, we are able to provide pragmatic solutions to our clients. Our experience with a highly diversified client base, provides us with valuable insights of the industry tax issues and positions and puts us in a better place to advise our clients.
Tax optimization also plays an important role and we offer a comprehensive bouquet of direct tax services to our clients consisting of tax optimization and advisory, compliance and litigation services.
Key Features
Providing opinions on various complex tax issues;
Evaluating tax implications on EPC contracts, construction contracts, joint development agreements etc.
Evaluating and advising implications under ICDS and related disclosures;
Advising and assistance in preparing the Indian tax portion of Private Placement Memorandums (PPM’s);
Advising clients in designing a tax-efficient salary structure of employees;
Advising on taxation of charitable trusts;
Advising on GAAR implications of various transactions
Updating clients on developments in the field of direct taxes which could have a bearing on their business.
Cross Country Transaction Advisory Services
Double taxation is attracted when a NRI is liable for tax in country of his residence (say USA) on his worldwide income as well as in the source country (say India) on the income accruing or arising in India.
Double taxation on same income is attracted on account of the tax levied by the country in which income is earned (commonly known as “source country”) and if person who has earned the income is resident of another country then the tax is levied by home state (commonly known as “residence country”). For e.g. a NRI is resident of USA and has a source of income in India, the NRI is liable to pay tax on income in the source country i.e. India and also in the residence country i.e. USA.
A Double Taxation Avoidance Agreement (DTAA) is executed by both countries to mitigate the double or larger tax in the above situation and also to promote and foster economic trade and investment between the two countries.
DTAA makes provision for elimination on double taxation in one of the following manner:
Granting exclusive right to tax to one of the countries
Granting taxing rights to both countries but making a provision for limiting the rate of taxation of each country.
Granting right to resident of another country to obtain credit for taxes paid in the source country.
Granting right to resident of another country to obtain credit for taxes paid in the source country.
Interest income
Capital gains
Dividend income
Employment earnings
Consultancy and royalties income
Any other type of income
Business income
United Arab Emirates Tax Advisory Services
The tax system in the United Arab Emirates – or rather, the lack of taxes – is one of the main draws to the region for many expats. For instance, employees do not have to pay income tax.
Until January 2018, there was also no VAT. This tax on goods and services sold was introduced relatively low, at 5%. There’s also an excise tax that is levied on specific products deemed by the government to be harmful to human health or the environment, such as energy drinks and tobacco.
From June 2023, a new corporate tax will be introduced on companies in the UAE.
Federal taxes in the UAE
Income tax
The UAE does not levy a tax on income. There is, therefore, no need for an income tax return in the UAE as there is no applicable individual tax within the country. The same also applies to freelancers and self-employed individuals who are residents of the Emirates.
Income tax
Employees in the UAE who are Gulf Corporation Council (GCC) nationals (this includes the UAE) are subject to a social security regime of 17.5%. Those who are UAE nationals pay 5% (with an automatic deduction off their paycheck) and the employer pays the further 12.5%. Social security obligations also apply to employees of companies and branches registered in a free trade zone (FTZ). Also, residents of other GCC nations may be subject to different social security contributions relative to their home country. Conversely, non-GCC nationals are not subject to social security in the United Arab Emirates.
Income tax
Corporate taxes are only levied on oil companies and foreign banks in the UAE. However, there are 46 free zones in the country; businesses registered in the United Arab Emirates are exempt from paying tax for a period that can be extended. There are no capital gains taxes unless the company is taxable under another income tax.