S6
SILVERSIX ConsultantTax & Business Advisory
International · Test

POEM Residency Test

A first-pass test of whether a foreign company's Place of Effective Management is in India, making it an Indian tax resident.

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Inputs

POEM result

Notes

Screening aid. POEM is where key management and commercial decisions necessary for the conduct of the business as a whole are, in substance, made. A company with "active business outside India" (ABOI) and a majority of board meetings held outside India is generally not Indian-resident. POEM applies only where turnover exceeds ₹50 crore. This is indicative — seek advice for borderline cases.