Income tax on L1

[vijay.idkd]

Hi,
I have recently traveled from India to US on L1 visa, which was applied by my employer in US. During this span of time in US, I don't get any salary in US, but I continue to get my salary in India and my payroll remains with my employer in India. And, all my expenses here are reimbursable. Also, i'm given 60 USD per day as perdiem allowance for my food by my employer in India (not by employer in US).

Here are my questions.

(i) Is it legal to work in US under L1 visa without getting salary from my employer?
(ii) Without any real income in US, my company says i'm tax liable in US if my assignment extends beyond 60 days in US. Under such circumstances, they will pay income tax on my behalf and do all paper work. Is it legal if income tax is paid on my name in US even if i don't get income in US?

Kindly let me know the basics so that i can ask about these to my company.

Regards
Vijay

[raghvi]

Hi,
I have recently traveled from India to US on L1 visa, which was applied by my employer in US. During this span of time in US, I don't get any salary in US, but I continue to get my salary in India and my payroll remains with my employer in India. And, all my expenses here are reimbursable. Also, i'm given 60 USD per day as perdiem allowance for my food by my employer in India (not by employer in US).

Here are my questions.

(i) Is it legal to work in US under L1 visa without getting salary from my employer?
(ii) Without any real income in US, my company says i'm tax liable in US if my assignment extends beyond 60 days in US. Under such circumstances, they will pay income tax on my behalf and do all paper work. Is it legal if income tax is paid on my name in US even if i don't get income in US?

Kindly let me know the basics so that i can ask about these to my company.

Regards
Vijay

What your company seems to be exploiting is probably a loophole in the current L1 laws. With no minimum salary defined for L1 I don't see this arrangement as not being legal.

This is my opinion not legal advice.

[shrey]

Hi

My L1 visa got approved yesterday.I will be going to US by april month end.I wanted to know that do I need to ge an NOC from income tax department that I have paid my taxes till last year or just keeping soft copies of my IT returns is enough.

Thank you

[inadmissible]

Vijay, you a personally liable for taxes on wages you have earned in the United States, regardless of how you were paid