What is cross-border tax advisory?

Cross-border tax advisory helps businesses and individuals manage tax obligations across multiple countries — ensuring compliance with UK, UAE, US, and Indian tax laws while minimising unnecessary tax liability.

Do NRIs living in the UK need to file a tax return?

Yes. NRIs living in the UK are subject to HMRC rules based on their residency status. The Tax Planet provides specialist NRI tax planning to ensure full compliance and maximum DTAA benefits.

What is DTAA and how does it benefit NRIs?

DTAA (Double Taxation Avoidance Agreement) prevents NRIs from being taxed twice on the same income in two countries. The Tax Planet helps clients claim all available DTAA benefits across UK, UAE, US and India.

How does The Tax Planet help Indian businesses in the UK?

We provide specialist tax planning, HMRC compliance, bookkeeping, and cross-border advisory — helping Indian-origin businesses stay compliant and tax-efficient across the UK and India corridor.

What services does The Tax Planet offer for UAE residents?

We advise UAE-resident Indians and businesses on cross-border tax exposure, UK tax obligations, corporate structuring, and international tax planning across UAE, UK and India.

How do I book a consultation with The Tax Planet?

Simply click the Book A Call button on our website to schedule a free discovery call with our specialist advisors.

UAE Corporate Tax 2026: What Indian Business Owners in Dubai Must Know

The UAE Corporate Tax — introduced in June 2023— is now firmly established as a reality forevery business operating in the UAE. For the 3.5 million Indians living and doing business in Dubai and across the UAE, 2026 brings new compliance obligations, tighter enforcement,and significant consequences for those whoare still not fully prepared. Here is everything you need to know.

What is UAE Corporate Tax?

UAE Corporate Tax is a federal tax on business profits introduced by the UAE government in June 2023. It applies to all businesses and individuals conducting business activities
in the UAE.
Key facts for 2026:

UAE Corporate Tax — 9% on net profits above AED 375,000 (introduced June 2023)

Small Business Relief — 0% for revenue below AED 3M (conditions apply)

Free Zones — 0% on qualifying income, but substance requirements strictly enforced

Registration mandatory — all businesses must register, even if no tax is owed

What Has Changed in 2026?

The UAE Federal Tax Authority (FTA) significantly increased its enforcement activity through 2025 and into 2026. Key developments Indian business
owners must be aware of:

Late registration penalty — AED 10,000+ for missing UAE Corporate Tax registration

Transfer pricing FTA actively reviewing UAE-India related-party transactions; arm’s length documentation non-negotiable

Economic substance — Free Zone 0% rate requires genuine UAE activity; paper companies no longer qualify

Pillar Two — 15% minimum tax applies to multinationals with €750M+ global revenue (UAE enacted 2024)

How UAE Corporate Tax Affects Indian Business Owners

For Indian entrepreneurs and business owners in Dubai, UAE Corporate Tax interacts with
Indian tax obligations in several important ways:

UAE Corporate Tax not creditable in India — does not reduce Indian tax liability under DTAA

Dividend repatriation — UAE-India DTAA reduces but does not eliminate Indian tax on dividends

Indian residency still critical — worldwide income (including UAE profits) taxable if Indian tax resident

Transfer pricing — UAE-India intercompany transactions must comply with rules in both jurisdictions

Free Zone Companies — The 2026 Reality

Many Indian entrepreneurs set up UAE Free Zone companies specifically to benefit from 0% Corporate Tax. In 2026, the qualifying conditions are strictly enforced:
To qualify for 0% as a Qualifying Free Zone Person:

Real substance required — office, staff & genuine management in Free Zone

Qualifying income only — mainland, financial & related-party income may not qualify for 0%

Regime election is sticky — switching out of Qualifying Free Zone Person status is difficult

Arm’s length mandatory — all related-party transactions must be documented at arm’s length

Many Indian-owned Free Zone companies that assumed they would automatically qualify for 0% are finding in 2026 that they do not — and are facing unexpected 9% Corporate Tax bills plus penalties for non-compliance.

UAE-India DTAA — Your Key Protection

The UAE-India Double Taxation Avoidance Agreement remains one of the most beneficial
tax treaties available to Indian business owners. Key protections in 2026:

Dividends — 10% withholding under DTAA vs 20% standard Indian rate

Interest — reduced withholding on UAE-India interest payments

Royalties — reduced withholding on royalties & technical service fees

Business profits — only taxable in India if permanent establishment exists in India

What Should You Do Now?

2026 is the year UAE Corporate Tax compliance becomes non-negotiable. The FTA is actively enforcing — and penalties for non-compliance are significant.

Review Free Zone income — confirm your income genuinely qualifies for 0%

Maintain transfer pricing docs — required for all UAE-India related-party transactions

Check Indian residency status UAE tax does not remove Indian personal tax obligations

Claim DTAA benefits proactively — on dividends, interest & royalties

Use a UAE-India specialist — you need someone who knows both tax systems