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Home » Indian Tax Firms Expand into Gulf Amid New Tax Reforms

Indian Tax Firms Expand into Gulf Amid New Tax Reforms

Indian Tax Firms Expand into Gulf Amid New Tax Reforms (1)

Indian tax advisory firms are increasingly expanding operations into Gulf countries to capitalize on rising demand from multinational companies and India-linked businesses, as the region introduces new tax systems and compliance frameworks.

Countries in the Gulf, traditionally known for low or tax-free environments, have begun implementing corporate taxes, global minimum tax rules, and stricter compliance requirements. This regulatory shift has created a growing need for specialized tax advisory services, prompting several India-origin firms to establish or plan offices in the United Arab Emirates. Some Indian law firms with taxation practices have also expanded into the region.

One of the major drivers of this trend is the introduction of a 9% corporate tax by the UAE in 2023, along with a 15% domestic minimum top-up tax for large multinational enterprises. Meanwhile, Oman is preparing to introduce a personal income tax from 2028, further widening the region’s tax framework. These changes have significantly increased the complexity of compliance for companies operating in the Gulf.

Industry experts note that the phased rollout of electronic invoicing systems in the UAE from July this year is another factor driving demand. The system will require businesses to exchange machine-readable invoices directly with the Federal Tax Authority, improving transparency, reducing fraud, and enabling real-time reporting. As a result, companies are seeking advisory support to upgrade reporting systems and manage documentation requirements.

Specialized advisory areas such as transfer pricing, corporate restructuring, and cross-border tax compliance are witnessing particularly strong demand due to a shortage of experienced professionals in the region. Unlike India, transfer pricing regulations in the UAE apply not only to multinational firms but also to large domestic companies and transactions involving connected persons such as shareholders.

Experts also highlighted that multinational companies are seeking guidance on restructuring their free-zone setups, ensuring compliance with new tax rules, and determining eligible income categories. Although businesses operating in UAE free zones may receive corporate tax exemptions, a standard tax rate applies to income from non-qualifying activities, increasing the need for careful tax planning.

This expansion marks a second wave of tax advisory deployment in the Gulf. The first wave occurred after the introduction of value-added tax (VAT) in countries such as the UAE, Saudi Arabia, Bahrain, and Oman between 2018 and 2021, when major global accounting firms established a strong presence in the region.

Industry observers say the current trend is being led primarily by mid-sized and specialized Indian firms, many of which already serve clients with operations in the Gulf. For these firms, setting up regional offices represents a natural progression to support cross-border business activities more effectively.

Overall, the tightening of tax regimes across Gulf economies is transforming the region into a significant growth market for Indian tax advisory firms, as businesses seek expert support to navigate evolving regulatory and compliance landscapes. 

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