Expatriate

Meaning & Definition

An Expatriate refers to an employee who is sent by the company to work in a foreign country for a particular period of time. Expats can be employed in the foreign offices, subsidiaries, or client sites of an organization. The terms of employment of expats involve relocation packages, global compensation, tax planning, and visa services.

Important features of an expatriate

• Helps in the expansion of global business.
• Transfers knowledge and company culture.
• Enhances leadership development and global experience.
• Supports the management of global projects and subsidiaries.
• Improves global employee strategy.

Legal & Regulatory Considerations

Expatriate employment includes the following compliance aspects:

• Compliance with the employment visa and work permit as per the laws of the particular country.
• Compliance with the income tax laws of the Indian Income Tax Act, 1961 (for residential status and global income treatment).
• Social security compliance as per the international agreement (for example, social security agreements between countries).