Indians in the UAE will not pay income tax, clarifies New Delhi – The National

Indians in the UAE will not pay income tax, clarifies New Delhi – The National

Indian residents in the UAE and the Middle East will not be taxed on their incomes earned abroad, the Indian government has clarified.. A new provision suggested that Indian citizens who did not pay taxes in a foreign country would be deemed residents of India and their global income would be taxable back home.. Those who are residents of one country outside India will be exempt.. On Sunday, the government of India also issued a statement specifying it was an "anti-abuse provision" to loop in Indian citizens, who live in low or no tax jurisdiction to stay off the tax radar in India.. "The new provision is not intended to tax those Indian citizens who are bonafide workers in other countries," read a press release issued by India's ministry of finance.. "In some section of the media, the new provision is being interpreted to create an impression that those Indians who are bonafide workers in other countries, including the Middle East, and who are not liable to tax in these countries will be taxed in India on the income they have earned there.. The new provision is not intended to include in tax net those Indian citizens who are bonafide