UAE Corporate Tax Advisory
for Indian Businesses
Whether you run a UAE Free Zone company, an Indian subsidiary of a UAE parent, or are structuring a cross-border business - we provide expert UAE CT compliance and India-UAE tax advisory.
UAE Corporate Tax - What Indian Businesses Must Know
UAE Tax Advisory Services
UAE Corporate Tax (CT) Compliance
Registration with the Federal Tax Authority (FTA), determination of taxable vs. exempt income, CT return preparation, and filing for UAE entities - including mainland, Free Zone, and group structures.
India-UAE DTAA Advisory
The India-UAE Double Taxation Avoidance Agreement (DTAA) significantly reduces withholding taxes on dividends, interest, and royalties. We advise on treaty eligibility, LOB provisions, and the most tax-efficient payment structures between India and UAE entities.
Free Zone Entity Structuring
UAE Free Zone companies must meet Qualifying Free Zone Person (QFZP) criteria to maintain the 0% CT rate. We assess your structure against QFZP conditions - substance requirements, qualifying income tests, and de minimis thresholds - and advise on any restructuring required.
Repatriation & Dividend Planning
Moving profits from UAE to India, or vice versa, involves FTA rules, DTAA withholding rates, FEMA compliance, and Indian tax implications. We structure repatriation to minimise tax leakage at both ends.
Transfer Pricing - UAE to India
Transactions between an Indian subsidiary and its UAE parent (or sister entity) require arm's length pricing documentation on both sides. We prepare consistent TP documentation covering both Indian and UAE regulatory requirements.
India Entry for UAE Businesses
UAE companies looking to set up in India face a complex entry decision: branch, subsidiary, or LLP. We advise on optimal structure, FEMA compliance, FDI approvals, and ongoing transfer pricing between the UAE parent and Indian entity.
India-UAE Structure That Delivered
Cross-Border Tax Optimisation - UAE Parent, Indian Subsidiary
Structured a tax-efficient route for a UAE-based client incorporating an Indian subsidiary. Optimised the India-UAE DTAA position on management fees and royalties, prepared TP documentation for both jurisdictions, and ensured FEMA compliance - resulting in 100% regulatory compliance and an estimated 15% reduction in cross-border tax leakage.
Sunny Stephen
Consultant, BMG India
Who Handles Your UAE Advisory
CA Mehul Agrawal
Partner - UAE & International Tax
CA Mehul is one of very few Chartered Accountants in India to hold a formal UAE Corporate Taxation certification. He advises Indian businesses operating in UAE, UAE companies setting up in India, and NRI entrepreneurs managing cross-border structures - with a specialisation in India-UAE DTAA, Free Zone compliance, and transfer pricing between both jurisdictions.
UAE Corporate Tax FAQs for Indian Businesses
Does a UAE company owned by Indians need to file UAE Corporate Tax?
Yes. The UAE Corporate Tax regime (effective for financial years starting on or after 1 June 2023) applies to all UAE-resident entities including those owned by Indian nationals or Indian companies. The standard rate is 9% on taxable income exceeding AED 375,000. Entities with income below this threshold pay 0% but must still register with the FTA and, depending on their status, file a return.
How does the India-UAE DTAA reduce double taxation?
The India-UAE DTAA (signed 1993, amended 2007) provides reduced withholding tax rates: dividends are taxed at 10% (vs the standard 20% under Indian domestic law), interest at 12.5%, and royalties at 10%. To claim these rates, the UAE entity must provide a valid Tax Residency Certificate (TRC) issued by the UAE MoF and file Form 10F with the Indian tax authorities. Without a TRC, the Indian payer must deduct at the higher domestic rate.
What is a Qualifying Free Zone Person (QFZP) and how does it affect CT?
A Qualifying Free Zone Person (QFZP) is a Free Zone entity that meets specific UAE CT requirements to benefit from a 0% tax rate on its Qualifying Income. To qualify, the entity must: (1) maintain adequate substance in the UAE Free Zone; (2) derive only Qualifying Income (income from transactions with other Free Zone entities or from specific permitted activities); (3) not have elected to be subject to standard CT; and (4) comply with transfer pricing rules. Income from transactions with mainland UAE parties or income that doesn't meet the qualifying test is taxed at 9%. We assess QFZP eligibility as part of our UAE CT engagement.
What FEMA obligations arise when an Indian company receives dividends from a UAE subsidiary?
When an Indian company receives dividends from its overseas subsidiary, the dividends are repatriated under RBI's Liberalised Remittance Scheme (LRS) framework for corporates. The Indian company must: (1) report the receipt in its annual FEMA return (APR - Annual Performance Report); (2) include the foreign dividend in its Indian taxable income (Section 115BBD provides a concessional 15% tax rate on certain foreign dividends); and (3) claim the DTAA benefit to avoid double taxation on the same income. We manage this end-to-end.
Does having a UAE entity create a Permanent Establishment (PE) risk in India?
Yes, Permanent Establishment risk is a critical concern for UAE businesses operating in India. If the UAE company has employees, agents, or a fixed place of business in India that conclude contracts on its behalf, the Indian tax authorities may treat the UAE entity as having a PE in India - making its profits attributable to India taxable here. We review your operational structure, employee roles, and contract flows to identify and mitigate PE exposure before it becomes a problem.
India-UAE Tax - Sorted by a Certified Expert
Whether you need UAE CT registration, DTAA planning, or a full India-UAE structure review - we bring the only UAE Corporate Taxation-certified CA practice to the conversation.