Is your business in Dubai paying more taxes than it should? With new laws, shifting regulations, and complex cross-border rules, it’s easy to get overwhelmed. Many Indian business owners are unsure how recent UAE–India tax developments affect them. But what if these changes could actually help optimise your tax position?
At Jitendra Business Consultants (JBC), we help Indian-owned businesses in Dubai interpret and apply these evolving rules, ensuring you stay compliant, competitive, and cost-efficient.
UAE–India Tax Reforms: Why It Matters
The UAE–India tax reforms in 2024 bring important updates that affect how Indian companies in Dubai operate. One key law, Cabinet Decision 55 of 2025, provides tax exemption for foreign companies fully owned by certain Exempt Persons (such as UAE government-related entities or qualifying funds). This rule applies from 1 June 2023 and is meant to support specific business setups, not every foreign-owned firm will qualify.
So what does this mean for Indian entrepreneurs in Dubai? With proper business structuring, some Indian-owned firms may benefit from exemptions or simplified compliance. The UAE tax treaty with India is also being interpreted more clearly now, helping avoid double taxation if businesses meet the right conditions. The goal of these changes is simple: make the UAE more attractive for businesses by offering clarity and confidence in the tax system.
Which Indian-Owned Firms Gain the Most?
Not all businesses are impacted in the same way. The ones who benefit most from the UAE India tax reforms are those with clean ownership structures, especially when the foreign parent is considered an “Exempt Person” under UAE tax law.
Key groups who benefit include:
- Indian holding companies owning SPVs in Dubai
- SMEs operating in Free Zones under 0% tax brackets
- Consultancy firms in unincorporated partnership models
- Tech firms setting up R&D entities in the UAE
- Indian retail companies with supply chains via Dubai
Each can structure operations to maximize NRI business tax benefits in UAE. The reforms are crafted to promote clear cross-border transparency and avoid overlaps between Indian and UAE tax laws.
Tax Structuring Opportunities Under the New Rules
One clear outcome of the reforms is more flexibility in how Indian entrepreneurs can structure their Dubai entities. CD 63/2025 now allows unincorporated partnerships to elect for entity-level taxation in the UAE. This opens up simpler accounting and potential access to Free Zone tax incentives. With this election, consultancies and joint ventures owned by Indian partners can keep profits taxed at a single layer, removing the need for multi-level filings. It also gives such firms access to deductions and group relief provisions. These structuring options are changing how Indian companies in Dubai are being set up. NRI business tax benefits UAE are becoming more accessible, even for newer players.
The India–UAE Double Taxation Agreement: A Quick Overview
The Double Taxation Avoidance Agreement UAE and India continues to guide most cross-border tax planning. It reduces or eliminates taxes on dividends, interest, royalties, and capital gains. Indian companies in Dubai can now ensure that profits are not taxed twice, so long as income is declared transparently in both countries.
For example, profits earned in the UAE can often be remitted to India with minimal or no withholding tax, depending on the business activity. The treaty ensures Indian entrepreneurs are protected from overlapping taxation under both jurisdictions. As reforms continue, the focus is on further tightening treaty enforcement and encouraging tax cooperation between the two nations.
Why Indian Entrepreneurs Must Act Now
The UAE-India tax reforms 2024 are already in effect. Those delaying alignment with the new rules might miss out on tax advantages. Also, larger Indian multinational groups may soon face the 15% minimum tax under OECD’s Pillar Two if they don’t plan accordingly. For smaller businesses, there’s less immediate impact, but planning is still vital. Structuring incorrectly today may lead to re-filings, penalties, or missed exemptions tomorrow. Understanding the implications of the UAE tax treaty with India is no longer optional. It’s required to stay competitive. The benefits of UAE–India tax reforms for Indian entrepreneurs are clear: legal clarity, better structuring, and more affordable compliance. It’s time to apply the rules smartly, not just read about them.
How Can JBC Simplify This for You?
At Jitendra Business Consultants (JBC), we understand how difficult tax reform updates can be. Many Indian companies in Dubai need help interpreting what these new UAE India tax reforms 2024 actually mean for their specific business type.
That’s where our team steps in. We review your corporate structure, identify gaps, and suggest practical solutions that match the UAE tax treaty with India. If it’s registering an entity, applying for exemptions under CD 55, or choosing the right partnership tax election, we make sure the process is efficient and accurate. We’ve helped hundreds of Indian entrepreneurs legally reduce tax risks and increase operational clarity. Whether you’re starting a small venture or expanding an existing group, we ensure the NRI business tax benefits UAE are not missed.
Set up your consultation with JBC today. Your business deserves compliant, efficient, and worry-free growth.
