Taxation - Tax Treaties: Witholding Tax Rates
India has signed tax treaties with various countries, most of which are based on the Organisation of
Economic Cooperation and Development (OECD) Model. These treaties
provide a favourable method of computing taxable business profits.
India has tax treaties with over 40 countries including USA, UK,
Japan, Germany and France, with whom it has significant economic
relationships. This results in a relatively lower tax cost for foreign
companies doing business in India.
Rates for Dividends, Interest, Royalties
and Technical Fees (in %)
| Name of the Country |
Dividend |
Interest |
Royalty |
Technical Fee |
| Austria |
Not Mentioned |
Not Mentioned |
Not Mentioned |
Exempt,
except on amounts (net) attributable to activities performed
in the state |
| Australia |
15 |
15 |
10/1/20 |
No separate
provision |
| Bangladesh |
10,15 |
10 |
10 |
– |
| Brazil |
15 |
15 |
15/25 |
No separate
provision |
| Belgium |
15 |
15 |
30 |
30 |
| Canada |
15,15 |
15 |
20 |
20 |
| Czechoslovakia |
25,25 |
15 |
30 |
30 |
| Denmark |
15,25 |
10,15 |
20 |
20 |
| Federal German Republic |
15 |
10,15 |
Not Mentioned |
20 |
| Finland |
15,25 |
15 |
30 |
30 |
| France |
Not Mentionedt |
Not Mentioned |
Not Mentioned |
Exempt, except
on amounts (net) attributable to activities performed in the
state |
| Great Britan
|
15 |
10,15 |
30 |
30 |
| Greece |
Not Mentioned
|
Not Mentioned
|
Not Mentioned
|
No separate
provision |
| Hungary |
15 |
15 |
40 |
20 |
| Indonesia
|
10,15 |
10 |
15 |
No separate
provision |
| Italy |
Not Mentioned |
15 |
Not Mentioned
|
Not Mentioned |
| Japan |
15 |
10,15 |
20 |
20 |
| Kenya |
15 |
15 |
20 |
17.5 |
| Korea (South)
|
15,20 |
10,15 |
15 |
15 |
| Libya |
Not Mentioned
|
Not Mentioned
|
Not Mentioned
|
No separate
provision |
| Malaysia
|
Not Mentioned
|
Not Mentioned
|
Not Mentioned
|
No separate
provision |
| Mauritius
|
5,15 |
Nil, Not
Mentioned |
15 |
No separate
provision |
| Nepal |
10,15 |
10,15 |
15 |
No separate
provision |
| Netherlands
|
15 |
10,15 |
20 |
20 |
| New Zealand
|
20 |
15 |
30 |
30 |
| Poland |
15 |
15 |
22.5 |
22.5 |
| Norway |
15,25 |
15 |
20 |
20 |
| Romania |
15,20 |
15 |
22.5 |
22.5 |
| Singapore
|
Not Mentioned
|
Not Mentioned
|
Not Mentioned
|
No separate
provision |
| Sri Lanka
|
15 |
10 |
10 |
No separate
provision |
| Syria |
Not Mentioned
|
7.5 |
10 |
No separate
provision |
| Swden |
15,25 |
15,10 |
20 |
20 |
| Tanzania
|
10,15 |
12.5 |
20 |
20 |
| Thailand
|
15,20 |
10,25 |
15 |
No separate
provision |
| United Arab
Republic |
Not Mentioned
|
Not Mentioned
|
Not Mentioned
|
No separate
provision |
| USA |
15,25 |
10,15 |
20,15 |
20,15 |
| UAE |
15 |
15 |
22.5 |
22.5 |
| Zambia |
5,15 |
10 |
10 |
10 |
|
