Manoj Kumar 05 March 2024

Rnor status

Dear Lawyers,

I am an Indian citizen living and working in Germany for the past 12 years. Which means I am fully qualified to get the RNOR status.

Now my company is willing to provide me with remote work to work from india/ send me to india in deputation so I can work from India for 2 years.(my company doesn't have a branch In india, also they are not open to register in india as a branch). The salary will be directly to German bank account and will continue to pay tax in Germany to maintain the visa incase, if I decide to return to Germany after 2 years(but this is unsure).

How will the taxation be ? Should I pay attention to anything in particular ?

Do I need to pay the tax in india as well ?(also, india and Germany have double tax treaty agreement).

Does my company need to do anything?

Thanks in advance for the prompt answers.

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3 Replies

T. Kalaiselvan, Advocate (Advocate) 06 March 2024

The foreign income of RNOR individuals will not be taxable in India. Another amendment has been made regarding Deemed Residential Status, which states that a person is deemed to be an Indian Resident if he is not tax liable in any foreign country.

A person with the status of RNOR is eligible to establish an RFC account or Resident Foreign Currency account. You may bring foreign funds to India in any currency you choose and deposit them into this account. NRE/NRO/FCNR fixed deposits and savings accounts can be converted to RFC accounts and RFC fixed deposits.