What is specific to UAE companies
The India–UAE treaty caps dividends at 10%, interest at 5% for banks and 12.5% otherwise, and royalties at 10%. It has no technical fees article, so such fees are tested as business profits.
Treaty rates
| Income | Indian tax under the treaty |
|---|---|
| Dividends | 10% |
| Interest | 5% (banks), 12.5% otherwise |
| Royalties | 10% |
| Technical service fees | There is no separate technical fees article, so such fees are usually tested as business profits. |
| Gains on Indian shares | Commonly read as taxable only in the seller's state of residence, subject to anti-abuse rules. |
Permanent establishment
Fixed place, building site and service rules; confirm the day thresholds in the text.
Our services
How SU and Company helps
We plan and document how money moves back to the parent, at the right treaty rate.
- Dividend, royalty, fee and interest planning
- Treaty withholding and remittance paperwork
- Board and FEMA steps for dividends and buybacks
- Indian figures and certificates for the parent's tax relief
Questions
Does the treaty always beat Indian domestic rates?
The lower of the treaty and domestic rate applies, provided the recipient is the beneficial owner and holds a valid residency certificate.
General information as at 5 November 2026, not advice for a particular case. Indian and UAE rules change often; confirm the current position before acting. UAE law points should be confirmed with a UAE adviser.