Globe-Trotting Sportsman Or Entertainer: India

A Indian citizen with extensive, international, multi-sourced income is not in a good tax situation unless he or she can establish non-residence, since full, world-wide taxation of income and capital gains will apply.

India has tax treaties with more than more than 80 other countries, but if resident in India, the peripatetic professional may well find himself paying withholding tax in a number of countries which cannot in some cases be reclaimed or set off against Indian taxation because of the absence of a tax treaty.

Such an individual will almost certainly resort to corporate structures to market his or her skills and manage derivative income flows. It may well be that these can usefully be based in offshore jurisdictions, although complex structures may be necessary if corporate anti-avoidance rules are to be avoided.

Apart from the extra difficulty of minimising tax on the income side, an Indian-resident sportsman or entertainer will be in the same position as any other Indian resident. (Select 'High-Tax Country Resident' and 'India' for a fuller description).

Foreign sportsmen and entertainers' earnings in India are likely to be subject to withholding tax at 10%, although if the earnings can be classified as 'winnings' they may attract a 30% rate. Double tax treaties will often apply.

If a foreign sportsman or entertainer becomes an Indian resident, then he or she is in the same position as an expatriate executive (select 'Expatriate Executive' and 'India').

www.lowtax.net contains details of the offshore business sectors of 50 jurisdictions, and their taxation.

NB: The suggestions given above do not constitute investment advice. They are intended only to assist individuals in finding appropriate professional advice, which is essential for anyone planning offshore investment.