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NRI in Brazil, client in Goa: where will your professional income be taxed?
Mint 2 hrs ago·31 Aug 2026, 12:41 pm
An Indian resident working abroad, such as an architect in Brazil, may still owe tax in India if they provide professional services to a client located in the country. This is because the tax liability is often determined by the source of income rather than the taxpayer's residence. Consequently, the income earned from the Goa-based client could be taxable in India, regardless of the NRI's location.
The situation changes due to the Double Taxation Avoidance Agreement (DTAA) between India and Brazil. This treaty provides a specific rate of tax that applies to professional fees earned by residents of one country for services performed in the other. Under the agreement, the tax rate is capped at 10% of the gross professional fees, which is generally lower than the standard income tax slab applicable to Indian residents.
For investors, this highlights the importance of understanding international tax obligations. It ensures that income from foreign sources is not subject to double taxation. Going forward, it is crucial to monitor how the tax treaty is applied and whether any changes to bilateral agreements could impact the taxability of cross-border professional income.
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