Trying to dodge Indian taxes by setting up a company in Dubai? Think again, warns Ashish Singhal, co-founder of CoinSwitch. He calls this a “trap”, not a loophole, and says the Indian taxman is already on to it.
Singhal took to LinkedIn to bust the myth that registering a firm in tax-free Dubai can shield income from Indian taxation. His message is blunt: “Yup, that’s not going to work… if you live in India.”
Why Your Dubai Company Might Still Be Indian
The core issue, Singhal explains, comes down to control and location. Even if your company is registered in Dubai, if its operations—emails, proposals, deliveries, and deal closings—are happening from India, then “Your Dubai company might as well be an Indian one.” He asserts that India’s tax department “already sees it that way.”
This isn’t some new discovery for the tax authorities. Singhal states, “This isn’t a loophole. It’s a trap.” He adds that it’s already been “patched from three different directions—legal, operational, and data-sharing.”
No Hiding: India Knows Your Foreign Assets
Singhal further reminded his followers that India requires disclosure of foreign assets. Plus, the UAE shares financial data with India thanks to international agreements. This means the window for tax evasion is rapidly closing.
This warning comes at a time of increasing scrutiny. As more Indian residents channel revenue through foreign entities, 2025 is set to bring tighter compliance frameworks and intensified global data sharing.
The takeaway is clear: for Indian residents, moving operations offshore without actually moving yourself could lead to more than just audit questions—it could trigger full-blown investigations.