UAE Professionals in India: Avoiding Double Tax Liabilities

UAE-based professionals visiting India to conduct workshops or training sessions may face tax liabilities under local regulations, though specific relief mechanisms exist. Whether this income is taxable depends on the individual's residency status and the duration of their stay within the country. Under the Double Taxation Avoidance Agreement (DTAA) between the UAE and India, professionals may be exempt from local taxation if they do not maintain a 'fixed base' in India and their cumulative stay remains below the threshold defined by the treaty.

Tax authorities typically evaluate the nature of the engagement and the duration of the professional's presence to determine tax residency. If a professional spends a significant amount of time in India or establishes a recurring presence, the income generated from workshops could be classified as taxable revenue. However, for short-term visits that do not trigger the fixed-base criteria, the DTAA allows professionals to claim relief, preventing the same income from being taxed in both jurisdictions. Tax experts advise professionals to maintain detailed documentation regarding their travel dates, the nature of their services, and the specific terms of their engagements to ensure compliance with both UAE and Indian tax frameworks. Failure to meet these specific treaty conditions may result in the income being subject to Indian income tax, necessitating careful planning for those frequently traveling between the two nations for business purposes.