Indians will get tax exemption of Rs 84 lakh in this country, how different is the tax law here from India

Every Indian cherishes the dream of earning abroad, even those who go abroad, this question always remains in their mind as to where the tax will have to be paid on this income. In some countries, a lot of tax is charged, then in many places, big discounts are also given. The UAE government has also implemented a new tax law, which will have a direct impact on Indians as well.

Highlights
1. The new tax rule will be applicable from June 1, 2023.
2. Now the scope of tax exemption has been increased to about 84 lakhs.
3. Above this, corporate tax will be levied at the rate of 9 percent.

New Delhi. It is an Indian’s dream to get a job abroad and for most of the people who have gone there to earn, this question would often come to their mind whether they will have to pay tax in these countries like India. Dubai also comes as the favorite place of Indians, where people like to live and earn. The major reason for this is that the payment in Dubai is done in Dirham, which is much higher than the Indian currency. But, the tax levied here also remains more in the same proportion. Recently, the United Arab Emirates (UAE) implemented a new tax system, in which huge exemptions have been announced.

In the federal decree issued by the UAE on tax, it has been said that now big tax exemptions will be given to those doing small business. The new tax rule will be applicable from June 1, 2023. Not only the citizens of UAE will get the benefit of this, but the Indians who have gone there to earn will also be given tax exemption. Under the new rule, the tax exemption limit has now been increased to about Rs 84 lakh.

To whom it will be applicable
The new tax system of UAE will be applicable only to those people who earn from business there. The new tax system will not be implemented on the earnings of the employees who get a salary. This rule will apply to both people already employed in Dubai and people going there in search of jobs, but only those people who do business will come under the purview. Under the new rule, annual income up to 3.75 lakh dirhams i.e. about Rs 84 lakh from business will now be out of the purview of tax.

Indian citizens should note that
in the new UAE tax law, corporate tax exemption will be applicable only to those businesses which fall in the qualifying free zone. Therefore, the Indian citizens going here should first get complete information about whether the business done by them will come under this purview or not. Only those businesses that fulfill these conditions will be exempted from tax.

then the Indian company will become a citizen of UAE The
The new tax system says that if an Indian company is completely controlled by the UAE, it will be considered a citizen there. However, such a rule needs to be known very carefully, as it may result in double taxation. Therefore, such a business will need to understand the tax law of the UAE and India closely.

How much is the new corporate tax rate
In the new corporate tax regime of UAE, corporate tax will be imposed at the rate of 9 percent on businessmen whose annual income is more than Rs 84 lakh. Here the financial year i.e. the financial year will also start from June 1. If someone’s business is being run completely from UAE, then wherever that person is, he will have to pay tax according to UAE law.

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