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V2048-15 1 July 2015 · SG de Fiscalidad Internacional Criterion in force
IRPF · residencia fiscal

Taxation of AECID income in India depends on individual tax residence

A Spanish national who worked as a Spanish lecturer in India and a teacher in Russia seeks guidance on how to tax her income. The DGT clarifies that her tax residence will be determined in accordance with the Personal Income Tax Law and the Double Taxation Convention with India, and that the taxation of her income will depend on that status.

The question raised

Question raised: Tax residence in 2014 and the manner in which the amounts paid by the AECID received in India must be taxed.

The DGT's ruling

If she is a tax resident in Spain, she will be taxed on her worldwide income, but the AECID income in India will be exempt in that country for two years according to the Spanish-Indian Convention. If she is not a tax resident in Spain, she will only be taxed in Spain on income from Spanish sources, meaning the AECID income in India will not be taxed in Spain. Residence is determined by staying for more than 183 days or the center of economic interests.

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