Hello, sir. I am working for a Japanese MNC, and our managing director is from Japan.
Deduction of PF for Foreigners
"Deductions for PF are 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."
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Deduction of PF for Foreigners
"Deductions for PF are 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."
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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 guide you properly.
Thanks & Regards,
Alok Singh
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82Thanks & Regards,
Alok Singh
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Hi Ravi-Sauson,
Applicability of PF Deductions for Foreign Directors
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
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Applicability of PF Deductions for Foreign Directors
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
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Not required for japanese companies. Japan has signed Social Security agreement with India in 2016 and hence this is exempted.
From India, Ernakulam
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From India, Ernakulam
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Countries with SSA Agreements with India
The following countries have signed SSA agreements with India. Therefore, please obtain a coverage certificate and submit it 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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The following countries have signed SSA agreements with India. Therefore, please obtain a coverage certificate and submit it 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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PF for foreign employees 1.10.08.pdf