Tax Comparison
India Corporate Tax Rate vs UAE — How Much Could You Save?
India companies pay up to 25.17% corporate tax. UAE free zone companies pay 0% on qualifying income. Use our calculator below to see your potential annual saving.
India vs UAE Tax Rates
| Tax Type | India | UAE Free Zone | UAE Mainland |
|---|---|---|---|
| Corporate Tax | 25.17% | 0% | 9% (above AED 375K) |
| Personal Income Tax | Up to 30% | 0% | 0% |
| VAT / GST | 18% | 5% | 5% |
| Capital Gains Tax | Varies | 0% | 0% |
| Dividend Withholding Tax | Varies | 0% | 0% |
India and the UAE have a Double Taxation Avoidance Agreement (DTAA). India and the UAE have a Double Taxation Avoidance Agreement (DTAA). UAE-sourced income is generally exempt from Indian tax if you are a UAE tax resident (183+ days/year in UAE). Indian residents must report foreign assets under FEMA and comply with RBI guidelines. Consult a CA for personal tax advice.
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Estimates based on headline corporate tax rates. Does not account for all surcharges, reliefs, or individual circumstances. Not tax advice. Consult a qualified tax professional.
Why Indian Entrepreneurs Move to UAE
0% Personal Income Tax
No income tax on your salary, dividends, or capital gains as a UAE resident — compared to 30% top rate in India.
100% Foreign Ownership
Keep full ownership of your company. No local partner required. Full repatriation of profits and capital.
UAE Residency Visa
A free zone trade license entitles you to a 2–3 year UAE residency visa. Sponsor family members on your visa.
No Forex Restrictions
Move money freely. No capital controls. Maintain bank accounts in multiple currencies without restriction.
Ready to set up from India?
See our step-by-step guide for Indian entrepreneurs — documents, costs, banking, and timeline.
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Get a free consultation and find out exactly how much your business could save by moving to a UAE free zone.
Frequently Asked Questions
What is the corporate tax rate in India in 2026?
Can I avoid Indian corporate tax by setting up a UAE free zone company?
Does India have a tax treaty with the UAE?
What is India's GST rate?
How much could an Indian business save in taxes by moving to a UAE free zone?
Tax rates shown are estimates based on representative headline corporate tax rates for the stated tax year. They do not account for all surcharges, slab details, reliefs, or individual circumstances. This is not tax advice. Always consult a qualified tax professional for your specific situation. Data last reviewed: .