Can I Be Tax Resident in Two Countries at the Same Time?

I work in the UAE and frequently travel to India for business.

One thing I've learned is not to assume that being an NRI automatically means you're not a tax resident of India. Tax residency depends on the rules of each country, your physical presence, and other legal criteria.

If there's a DTAA between the two countries, it may help determine how certain income is taxed and provide relief from double taxation where applicable. Since treaty provisions vary, I always verify the latest rules with a qualified tax professional.

I'm based in Canada and had a similar concern during the year I emigrated from India.

I learned that tax residency and immigration status are completely different things. Even after becoming a Canadian tax resident, I still had Indian-source income that needed attention.

My tax consultant reviewed my travel history, employment details, and the applicable tax treaty before determining how my income should be reported. The process was more involved than I expected, especially because each country's residency rules are different.

Yes, something similar happened to me when I relocated from India to the UK in the middle of a financial year.

Because the tax residency rules in India and the UK are different, there was a period where I appeared to meet the residency conditions in both countries. My accountant reviewed the India–UK DTAA and explained the "tie-breaker" provisions that determine which country gets primary taxing rights for certain types of income.

I still had to file tax returns where required, but the DTAA helped ensure I wasn't taxed twice on the same income. It wasn't something I would have been comfortable handling without professional advice.