DOUBLE TAX TREATY: INDIA & UNITED ARAB EMIRATES

The Double Tax Treaty between UAE and India was signed in 1989 and later amended through notifications of 1993, 2001, 2007 & 2013.

Double taxation is defined when similar taxes are imposed in two countries on the same taxpayer on the same tax base, which harmfully affects the exchange of goods, services and capital and technology transfer and trade across the border.

Public and Private companies, investment firms, air transport firms and other companies operating in the UAE, as well as residents, benefit from Avoidance of Double Taxation Agreements (DTA).

Thanks to an intensive economic trade of more than 20 billion dollars between UAE and India, the two countries have signed an arrangement based on the promotion of mutual economic relations. Because of this tax convention, India and UAE have managed to avoid over-taxation of their legal entities and taken successful steps to prevent tax evasion.

The following incomes are protected by the double taxation treaties signed between the UAE and India:
  1. Revenues from personal services.
  2. Revenues derived from shipping and air transportation.
  3. Interests, dividends, and royalties registered in both countries.
  4. Incomes from the alienation of immovable or movable properties are protected by this DTT (under specific conditions).
Companies with permanent establishments like factories, offices, branches, workshops, or any other workplaces in Dubai are covered.

To determine the country of residence for a legal entity, the state takes into consideration whether the business has one of the following establishments on its territory:
  • A place of Management;
  • A Branch;
  • An Office;
  • A Mine;
  • A Factory or Workshop.