For Indian Businesses, UAE Taxation is a major talking point these days.
The UAE has a population of about 10 million, including roughly 2.75 million Indian expatriates. India and the UAE have enjoyed a strong relationship for many years. Indian merchants traded through the Dubai port long before the UAE discovered oil. The 1958 oil discovery attracted many Indian workers seeking economic opportunities and a better lifestyle. Today, about 450,000 Indians in the UAE work as professionals or operate businesses.
Indian entrepreneurs own or run many major UAE businesses, including the Landmark Group, Jashanmal Group, Jumbo Group, Lulu Group, Aster DM Healthcare, and VPS Healthcare. These Indian businesses must understand the UAE tax procedures and requirements in detail.
The Indian government has also invested about $85 billion in the UAE market, making the UAE a key destination for Indian public investment. With many Indian companies, families, and government entities investing in UAE businesses, property, and leisure, and with the UAE aiming to remain an attractive and safe hub for global business and ultra-high-net-worth individuals, we must assess whether the new UAE Decree Law on corporate taxation may create challenges for ongoing Indian investment.
The attached thoughts highlight three significant difficulties that Indian-owned UAE businesses face under the Decree Law. In future pieces, we will explain other complex issues that also require solutions.
