Tax Free Employment ?

17 years ago
Hi, I am a US citizen who has been offered a teaching position in India. My prospective employer has stated 'there is a possibility of no taxation in India for the first two years if the person 1) is a national of a country that has signed the Dual Taxation Avoidance Agreement with India (ie. Not Canada OR South Africa!) 2) Can prove s/he has paid taxes for the last 2 years. Unfortunately no decision can be made on this in advance of arrival as it is very complex and depends on the School auditor’s decision.'

Has anybody heard of not having to pay taxes in India ? My salary is split almost equally into a base salary and a foreign living allowance. If this turns out to be true then would this mean I would have to pay US taxes instead of Indian taxes. Any US citizens out there who have come across this situation ?

Thank you.

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