UAE-India Tax & Commercial Advisory
The United Arab Emirates is one of India's largest trading partners and home to millions of Indian expatriates. The introduction of UAE Federal Corporate Tax alongside the India-UAE DTAA requires careful cross-border planning.
Tax & Treaty Framework (DTAA)
Recent updates to the UAE-India Double Taxation Avoidance Agreement and changes to Indian residency provisions (including deemed residency rules under Section 6(1A) for non-taxed citizens) require rigorous tracking of physical presence and corporate Place of Effective Management (POEM).
Commercial & Business Context
Entrepreneurs setting up holding entities in Dubai Free Zones (such as DIFC, DMCC, or ADGM) while operating operating entities in India must ensure clear operational substance and transfer pricing documentation.
Core Compliance Focus Areas
- Careful evaluation of Place of Effective Management (POEM) under Section 6(3) of the Indian Income-tax Act
- Analysis of Deemed Residency provisions under Section 6(1A) for UAE-based Indian citizens
- Form 13 Lower TDS certificate applications for UAE NRIs selling real estate in India
- Verification of UAE Tax Residency Certificates issued by the Federal Tax Authority (FTA)
Advice is rendered regarding Indian tax implications under the Income-tax Act, 1961, FEMA regulations, and applicable DTAA provisions. For domestic tax filings in United Arab Emirates, coordination with local CPAs is advised.
Frequently Asked Questions
Are Indian citizens working in Dubai exempt from Indian income tax?
Income earned outside India is generally not taxable in India if the individual qualifies as a Non-Resident under Section 6. However, any income accrued, arisen, or received in India (such as rental income, Indian capital gains, or interest) remains taxable in India.
Planning transactions between United Arab Emirates and India?
Discuss withholding tax certification, Form 15CA/15CB, or entity formation with our team.
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