Tax hike on super-rich to affect Expat hiring
The additional tax on the super-affluent section of society announced in Union budget 2019-20 is expected to influence the expat hiring by India Inc. They will face a stiff challenge from nations where the highest tax rate is less than India’s or where the employer is absorbing up the tax liability. The higher remuneration of expats could weigh in on India’s image as a pool of talent.
expats are an imperative source of senior talent across numerous sectors including consumer, automotive, manufacturing and IT, with executives paid more than Rs 5 crores annually. The maximum marginal tax rate on this income bracket is now 42.74%, (up from 35.88% previously).