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UAE and India · Dividends

Position as at 12 November 2026

Withholding rates

What tax is taken at source.

Last checked 12 November 2026.

India → UAE

What tax is taken at source.
PaymentTreaty capDomestic rate without treatyConditions and evidence
DividendsArt. 10 10% Indian rate without the treaty: 20% (10% for dividends from an IFSC unit), plus surcharge and cess

India can tax dividends paid to a UAE resident at no more than 10%. No minimum shareholding needed. Dividends to the UAE Government and named bodies (the UAE Central Bank, the Abu Dhabi Investment Authority and the Abu Dhabi Fund for Economic Development) are exempt.

  • India's 10% cap on dividends applies only if the UAE recipient is the beneficial owner of the dividends (Art 10(2), as replaced by the 2007 Protocol).
4 of 4 official sources

Art. 10

The treaty can reduce the rate to the lower of the two, usually only once you claim it with a UAE tax residence certificate. Position as at 12 November 2026.

UAE → India

The UAE charges 0% on these payments.

Checked by PBF against official sources. Position as at 12 November 2026. How we check

PBF UAE Tax Hub. General information, not advice.