Mastering Article 15 to transform cross-border anxiety into confident control.
For the elite independent professional, operating between the US and India is a gateway to immense opportunity. It is also a source of persistent, low-grade anxiety. The complexity of international tax, particularly the US-India Double Taxation Avoidance Agreement (DTAA), can feel like a minefield. The fear of a misstep—an overstayed visit, a poorly structured workspace—can undermine the very freedom you’ve worked to create.
This playbook is designed to eliminate that uncertainty. We will move beyond abstract legal theory and provide a clear, actionable framework for mastering your obligations under Article 15, the provision governing independent personal services. The goal is to shift your mindset from that of a professional reacting to risk to that of a CEO strategically managing resources. By the end, you will have a definitive system for assessing your position, managing your risks, and executing your compliance with precision.
Your journey to confidence begins with a single, foundational question: Do the rules of Article 15 even apply to you? Before tracking a single day or analyzing an office lease, you must confirm your operating context. This initial diagnostic determines your entire compliance strategy. Getting it wrong means wasting valuable energy on the wrong risks.
The foundational principle of international tax is that your income is taxed where you are a resident. A DTAA exists to prevent both countries from taxing the same income by establishing which nation has the primary right to tax.
Under the treaty, a "resident of a Contracting State" is anyone liable for tax there due to domicile, residence, or a similar criterion. If you are a U.S. citizen or Green Card holder, the U.S. is your tax home. For India, residency is typically determined by your physical presence. The default is simple: U.S. residents pay tax to the IRS; Indian residents pay tax in India. Article 15 becomes relevant only when you, as a resident of one country, earn income from services performed in the other.
Article 15 is specifically designed for income from "independent personal services." This includes traditional professions like physicians, lawyers, and engineers, but its scope is broad enough to cover the modern "Business-of-One." If you are a consultant, creative professional, software developer, or independent expert, you almost certainly fall under this umbrella.
The key distinction is independence. You are not an employee. If a client directs your work in detail, you likely fall under Article 16 ("Dependent Personal Services"), which has different rules. For the autonomous global professional, Article 15 is the correct framework.
Answering "yes" to all three questions confirms that the rest of this playbook is essential for you.
Confirming that Article 15 applies is the what. Mastering it is the how. Your entire compliance strategy boils down to proactively managing two distinct operational risks: the time you spend in the other country and the nature of the space you occupy there. Viewing these not as threats, but as controllable variables, is the key to confident control.
The first test is a simple measure of time. The country you are visiting (the "source" country) gains the right to tax your income if your stay there "is for a period or periods amounting to or exceeding in the aggregate 90 days in the relevant taxable year." This is a hard limit with significant financial consequences.
Treat this 90-day allowance as a budget. And every good budget requires meticulous tracking.
While managing your days is a matter of arithmetic, navigating the fixed base rule requires more nuance. Even if you spend fewer than 90 days in the other country, your income can be taxed there if you have a fixed base regularly available to you for performing your services. In our age of remote work, this term is dangerously ambiguous and the single biggest compliance trap for the modern professional.
A fixed base is any location with a degree of permanence that you use to conduct your business. Tax authorities look past lease agreements to the practical reality of your work. They want to know if you have established a stable, identifiable center of operations. Your goal is to draw a bright, clear line between temporary presence and an established operational base.
The Modern "Fixed Base" Red Flag Checklist:
Managing your fixed base risk is about demonstrating intent. Your actions must consistently prove you are a visitor performing services temporarily, not an enterprise establishing a local presence.
Demonstrating intent is half the equation; proving it with official documentation is the other. Your formal certifications and tax filings create the official record that tax authorities rely on. This is where you translate careful planning into a bulletproof compliance position and secure the benefits of the US-India tax treaty.
Think of the Tax Residency Certificate (TRC) as your passport for treaty benefits. It is the non-negotiable document officially certifying to the other country that you are a tax resident of your home nation.
For US Residents: Your TRC is Form 6166, Certification of U.S. Tax Residency. You obtain this by filing Form 8802, Application for United States Residency Certification, with the IRS.
Timeline is Critical: Plan ahead. Standard processing can take 45 days or more. Apply far in advance of when you'll need to present it to an Indian client.
Common Pitfall: Waiting until a client asks for it. By then, it's often too late to prevent withholding tax. Make obtaining your TRC an annual, proactive task.
For Indian Residents: To claim treaty benefits in the US, you must obtain a TRC from Indian tax authorities. Similarly, an Indian client will require a US professional's Form 6166 to justify not withholding tax. The US professional may also need to electronically file Form 10F on the Indian Income Tax portal.
The Modern Requirement: Form 10F is a mandatory self-declaration that provides details required by Indian tax law that may not be on a foreign TRC. It works in tandem with the TRC to complete your compliance picture for Indian authorities.
Your compliance efforts culminate in your annual tax return. For US professionals, this means filing Form 8833, Treaty-Based Return Position Disclosure, with your U.S. income tax return (e.g., Form 1040).
This form officially notifies the IRS that you are using a treaty provision to modify a standard rule of the U.S. tax code. Filing Form 8833 is not an audit trigger; on the contrary, it signals diligence. You explicitly state the treaty article you are relying on (Article 15) and briefly explain your position, creating a crystal-clear legal record.
The final piece of execution is proactive communication. Your goal is to prevent incorrect tax withholding before it happens, saving you the administrative headache of reclaiming funds from a foreign government.
For a US professional working with an Indian client, this means providing the client with a copy of your Form 6166 (TRC) and the electronically filed Form 10F upfront. This documentation serves as formal proof to the client's accounting department that you are not subject to Indian domestic withholding taxes (Tax Deducted at Source or TDS) on your service income. This simple step is often the difference between seamless payment and a significant disruption to your cash flow.
The US-India tax treaty is not a trap; it is a system of rules. The anxiety many professionals feel comes not from the rules themselves, but from passively reacting to them. The moment you shift your mindset from navigating a minefield to executing a clear strategy, everything changes. You reclaim control.
This playbook was designed to facilitate that shift. It provides a framework to transform compliance from a source of fear into a pillar of your professional strategy. You now have the tools to:
This structured approach is what separates the anxious freelancer from the confident CEO of a "Business-of-One." You built your business for autonomy and freedom. By implementing this framework, you create the operational integrity to protect it, allowing you to focus on your craft, not on compliance. You now have the playbook to operate with the confidence you deserve.
A certified financial planner specializing in the unique challenges faced by US citizens abroad. Ben's articles provide actionable advice on everything from FBAR and FATCA compliance to retirement planning for expats.
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