India Pvt Ltd vs UAE LLC — Corporate Tax on the Same Profit

Rates applied (FY 2026-27)

India — private limited company: business profit and rental income (after the 30% standard deduction and loan interest) at 22% under section 200 (115BAA) with a flat 10% surcharge and 4% cess — an effective 25.17% — or, if you choose, the regular 25% (turnover up to ₹400 crore) or 30% rate with surcharge of 7% above ₹1 crore and 12% above ₹10 crore; long-term gains on listed shares at 12.5% (above ₹1.25 lakh), short-term listed shares at 20%, long-term gains on property and other assets at 12.5%, short-term at the company rate; surcharge and cess on all of it. UAE — LLC: corporate tax at 0% on the first AED 375,000 of taxable income and 9% above it, on business profit, capital gains and rent alike (rent after interest, no standard deduction); a Qualifying Free Zone company pays 0% on qualifying income and 9% on everything else without the AED 375,000 band; gains on a qualifying shareholding (5% or more, held 12 months) are exempt under the participation exemption; there is no withholding tax and no tax on dividends paid. Dividends: from an Indian company, taxed in an Indian-resident shareholder’s hands at their slab rate or withheld at 10% under the India–UAE treaty for a UAE resident; from a UAE LLC, nil in the UAE and taxed in India at slab rates only if the shareholder lives in India. Not included: income the UAE company earns from Indian property, Indian assets or Indian operations (India taxes that in any company), the year of transition, transfer pricing, UAE VAT, audit and substance costs, and the rule that a UAE company managed from India is taxed in India as a resident. Read our notes on free zone qualifying income, POEM and taking profits home.

Disclaimer. These calculators are provided for general information only. They apply the Indian and UAE tax rules as we understand them for the year stated and are not legal, tax or professional advice, and they do not create a client relationship. Your actual liability depends on your complete facts, on documents we have not seen and on law that changes; please confirm any figure with us before relying on it or acting on it. I. H. Khan and Associates accepts no liability for decisions taken on the basis of these tools. Nothing you enter leaves your browser unless you choose to send the result to us. Section numbers are those of the Income-tax Act, 2025, in force from 1 April 2026, with the familiar 1961 Act number in brackets; the rules are unchanged — see our section map.