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India-United Arab Emirates DTAA

Name: ThynkTax
Price: 2499 INR
Rating: 4.8 (127 reviews)

Treaty signed: April 29, 1993 | Effective from: March 24, 1994

● Live · Rates served from /api/tax-rules/dtaa/AE

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NRI / Practical Note: For NRIs resident in UAE, India can only tax Indian-source income (rent from Indian property, capital gains on Indian assets, dividends from Indian companies). UAE-source salary is not taxable in India provided you satisfy the NRI status (less than 182 days in India during the FY). UAE does not impose personal income tax, so there is no double taxation issue for employment income.

Key Treaty Provisions

UAE has no personal income tax - the DTAA effectively ensures that Indian residents of UAE are not taxed by India on UAE-source income
Salaries of Indian citizens working in UAE: not taxable in India if they qualify as UAE residents (182+ days in UAE)
Indian investment income (rent, dividends from Indian companies): India retains taxing rights; UAE gives no credit (no income tax)
Capital gains on Indian property or shares: taxable in India (source-based)
Business Profits: UAE companies without PE in India are not taxable in India on business profits

Frequently Asked Questions

Is salary earned in Dubai by an Indian NRI taxable in India?▾

No, if you qualify as a Non-Resident Indian (spend less than 182 days in India in the FY, or less than 60 days with the extended criteria). Your UAE salary is not sourced from India, so India has no taxing right. The India-UAE DTAA further protects this. If you become a Resident of India, your global income becomes taxable.

What TDS rate applies on rent paid to an NRI in UAE from their Indian property?▾

Under the India-UAE DTAA, interest income is taxed at 12.5%. For rental income specifically, it is taxed as per property income provisions - the standard TDS rate of 30% (for NRI landlords) applies unless a lower certificate from the Assessing Officer is obtained. Rental income arises in India and India retains full taxing rights.

Do UAE companies pay tax in India on India-related profits?▾

Only if they have a Permanent Establishment (PE) in India - an office, branch, or agent. A UAE trading company with no presence in India is not taxable in India on business profits under the DTAA. Services performed in India for more than 183 days may create a Service PE.