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ravi-sauson
is it compulsory to deduct PF of a foreigner Director
From India, Delhi
DeepakHR0044
Hello sir, I am working for a Japanese MNC, and our managing director is from Japan.
"Deduction of PF is not mandatory in India for foreigners, but you have to submit a job service agreement from their country and submit it at our PF office.


alok-singh1
78

Dear Ravi,
Yes it is mandatory if you are processing their salary in India so you have to deduct. Otherwise it is not necessary.

If you have any difficulty you can visit your nearest PF Office they will be guide properly.

Thanks & Regards,
Alok Singh


raghunath_bv
149

Hi Ravi-Sauson,

The rules regarding Provident Fund (PF) deductions for foreign directors can vary depending on the specific circumstances, including the country in which the company operates and the terms of the individual's employment contract.

In many cases, whether PF deductions are compulsory for a foreign director depends on factors such as:

Applicability of PF Laws:
If the company operates in a country where PF laws apply to foreign directors, then deductions may be compulsory according to those laws.

Employment Contract
: The terms of the individual's employment contract may specify whether PF deductions are applicable and whether they are the responsibility of the employer or the employee.

Tax Treaties:
Tax treaties between the country of operation and the director's home country may also impact whether PF deductions are compulsory and how they are treated for tax purposes.
Immigration and Labor Laws: Immigration and labor laws in the country of operation may have regulations regarding the employment of foreign nationals, including provisions related to PF contributions.
It's essential to consult with legal and financial experts familiar with the specific laws and regulations in the country of operation to determine the obligations regarding PF deductions for foreign directors. Additionally, seeking guidance from a tax advisor or legal counsel experienced in international employment matters can help ensure compliance with relevant laws and regulations.

Thanks.

From India, Bangalore
ravichandiran-b
Not required for japanese companies. Japan has signed Social Security agreement with India in 2016 and hence this is exempted.
From India, Ernakulam
PALANISANJAY
1

The below countries signed SSA with India. Hence, obtain coverage certificate and submit to EPFO for non-contribution.

BELGIUM
GERMANY
SWITZERLAND
GRAND DUCHY OF LUXEMBOURG
FRANCE
DENMARK
REPUBLIC OF KOREA
NETHERLANDS
HUNGARY
FINLAND
SWEDEN
CZECH REPUBLIC
NORWAY
AUSTRIA
CANADA
AUSTRALIA
JAPAN
PORTUGAL
BRAZIL


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