UAE and India · Royalties

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.
Payment	Treaty cap	Domestic rate without treaty	Conditions and evidence
RoyaltiesArt. 12	10%	Indian rate without the treaty: 20%, plus surcharge and cess	India can tax royalties at no more than 10% of the gross amount. This includes payments for renting industrial, commercial or scientific equipment. India's 10% cap on royalties applies only if the UAE recipient is the beneficial owner of the royalties (Art 12(2)). The treaty has no technical-fees article. A fee gets the 10% royalty cap only if it pays for an Art 12(3) item, such as know-how. 3 of 3 official sources Art. 12 Income Tax Department, IndiaLast checked 12 November 2026. Income Tax Department, IndiaLast checked 12 November 2026. Income Tax Department, IndiaLast checked 12 November 2026.

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.