H-1B Remote Work in India: US Firms Face Major Tax Risks
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Storyboard•28-01-2026, 16:21
H-1B Remote Work in India: US Firms Face Major Tax Risks
- •US companies allowing H-1B visa holders stranded in India to work remotely face significant tax and compliance risks, experts warn.
- •The issue arises from visa processing delays for H-1B and H-4 applicants, particularly impacting Indian nationals due to reduced interview slots and new social media vetting.
- •Extended remote work could create a "permanent establishment" (PE) under Indian tax laws, exposing US employers to corporate tax liabilities in India.
- •If a PE is established, companies may need to pay taxes on Indian income and comply with local reporting and regulatory requirements.
- •Companies face a dilemma: terminate stranded workers at high cost or risk tax exposure with prolonged remote work arrangements.
Why It Matters: US firms allowing H-1B staff to work remotely from India risk significant tax liabilities due to PE rules.
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