Tax Guide for UAE Residents Earning Income from India

The India–UAE Double Taxation Avoidance Agreement (DTAA) prevents double taxation and specifies which country has primary taxing rights on each income type[1].

Determining Your Tax Residency Status

To access the UAE–India treaty, one needs to stay in the UAE for 183+ days or meet other UAE residency criteria. The DTAA provides tie-breaker rules for cases of dual residency[1]. Indian domestic residency tests and Section 115F reinvestment rules referenced in the KCM guide were not verified from primary legislation in this research package — confirm operative criteria against current Indian law.

Salary and Business Income: The Exemption

Salary or business income received by a UAE resident from India can be exempt in both India and the UAE, subject to there being no Permanent Establishment (PE) in India, holding a valid Tax Residency Certificate (TRC), and meeting other conditions under DTAA Articles 7 (Business Profits) and 15 (Salaries)[1]. Controlling treaty article text for these exemption conditions was not verified from primary treaty sources in this research package.

Capital Gains, Interest, and Dividend Income

Capital Gains: Gains from the sale of Indian company shares or securities are described as exempt from tax in both India and the UAE, primarily under DTAA Article 13(4)/(5)[1].

Interest Income: Taxed at 5% or 12.5% under DTAA Article 11, subject to the beneficial ownership clause[1].

Dividend Income: Taxed at 10% under DTAA Article 10, subject to the beneficial ownership clause[1].

Key Best Practices

Obtain a Tax Residency Certificate from the UAE Ministry of Finance (the FTA now administers TRC issuance via EmaraTax — confirm current application route). Ensure you have an Indian PAN card for all Indian financial transactions[1].

References

1. KCM Consultants, Tax Guide for UAE Residents Earning Income from India (20 June 2026).