List of published territories Afghanistan, Islamic Republic of$$$Albania$$$Algeria$$$Angola$$$Antigua and Barbuda$$$Argentina$$$Armenia$$$Aruba$$$Australia$$$Austria$$$Azerbaijan$$$Bahrain$$$Barbados$$$Belarus$$$Belgium$$$Bermuda$$$Bolivia$$$Bosnia and Herzegovina$$$Botswana$$$Brazil$$$Bulgaria$$$Cabo Verde$$$Cambodia$$$Cameroon, Republic of$$$Canada$$$Caribbean Netherlands$$$Cayman Islands$$$Chad$$$Chile$$$China, People's Republic of$$$Colombia$$$Congo, Democratic Republic of the$$$Congo, Republic of$$$Costa Rica$$$Croatia$$$Curaçao$$$Cyprus$$$Czech Republic$$$Denmark$$$Dominica , Commonwealth of$$$Dominican Republic$$$Ecuador$$$Egypt$$$El Salvador$$$Equatorial Guinea$$$Estonia$$$Fiji$$$Finland$$$France$$$Gabon$$$Georgia$$$Germany$$$Ghana$$$Gibraltar$$$Greece$$$Greenland$$$Guatemala$$$Guernsey, Channel Islands$$$Guyana$$$Honduras$$$Hong Kong$$$Hungary$$$Iceland$$$India$$$Indonesia$$$Iraq$$$Ireland$$$Isle of Man$$$Israel$$$Italy$$$Ivory Coast (Côte d'Ivoire)$$$Jamaica$$$Japan$$$Jersey, Channel Islands$$$Jordan$$$Kazakhstan$$$Kenya$$$Korea, Republic of$$$Kosovo$$$Kuwait$$$Kyrgyzstan$$$Lao PDR$$$Latvia$$$Lebanon$$$Libya$$$Liechtenstein$$$Lithuania$$$Luxembourg$$$Macau$$$Macedonia$$$Madagascar$$$Malawi$$$Malaysia$$$Malta$$$Mauritius$$$Mexico$$$Moldova$$$Mongolia$$$Montenegro$$$Morocco$$$Mozambique$$$Myanmar$$$Namibia, Republic of$$$Netherlands$$$New Zealand$$$Nicaragua$$$Nigeria$$$Norway$$$Oman$$$Pakistan$$$Panama$$$Papua New Guinea$$$Paraguay$$$Peru$$$Philippines$$$Poland$$$Portugal$$$Puerto Rico$$$Qatar$$$Romania$$$Russian Federation$$$Rwanda$$$Saint Kitts and Nevis$$$Saint Lucia$$$Saudi Arabia$$$Senegal$$$Serbia$$$Singapore$$$Sint Maarten$$$Slovak Republic$$$Slovenia$$$South Africa$$$Spain$$$Sri Lanka$$$Swaziland$$$Sweden$$$Switzerland$$$Taiwan$$$Tajikistan$$$Tanzania$$$Thailand$$$Timor-Leste$$$Trinidad and Tobago$$$Tunisia$$$Turkey$$$Turkmenistan$$$Uganda$$$Ukraine$$$United Arab Emirates$$$United Kingdom$$$United States$$$Uruguay$$$Uzbekistan, Republic of$$$Venezuela$$$Vietnam$$$Zambia$$$Zimbabwe JDCN-ANSNYN$$$JDCN-89JRLJ$$$JDCN-9L9ER3$$$JDCN-89HREB$$$JDCN-89HRFR$$$JDCN-89HRGN$$$JDCN-89HRHB$$$JDCN-89HRHY$$$JDCN-89HRJM$$$JDCN-89HRKA$$$JDCN-89HRKX$$$JDCN-89HRLL$$$JDCN-89HRM9$$$JDCN-89HRMW$$$JDCN-89HRNK$$$JDCN-89HRP8$$$JDCN-89HRPV$$$JDCN-89HRQJ$$$JDCN-89HRR7$$$JDCN-89HRRU$$$JDCN-89HRSH$$$JDCN-89HRV5$$$JDCN-89HRT6$$$JDCN-89HRTT$$$JDCN-89HRUG$$$JDCN-8FWH76$$$JDCN-89HRVS$$$JDCN-89HRWF$$$JDCN-89HRYE$$$JDCN-89HRZ3$$$JDCN-89HRZQ$$$JDCN-89HS2D$$$JDCN-89HS32$$$JDCN-89HS3P$$$JDCN-89PKJ7$$$JDCN-89HTBS$$$JDCN-89HS5N$$$JDCN-89HS6B$$$JDCN-89HS6Y$$$JDCN-8V8FHF$$$JDCN-89HS7M$$$JDCN-89HS8A$$$JDCN-89HS8X$$$JDCN-89HS9L$$$JDCN-89HSA9$$$JDCN-89HSAW$$$JDCN-89HSBK$$$JDCN-89HSC8$$$JDCN-89HSCV$$$JDCN-89HSDJ$$$JDCN-89HSE7$$$JDCN-89HSEU$$$JDCN-89HSFH$$$JDCN-89HSG6$$$JDCN-89HSGT$$$JDCN-9LFTHK$$$JDCN-89HSHG$$$JDCN-89HRX4$$$JDCN-8UENHH$$$JDCN-89HSJ5$$$JDCN-89HSJS$$$JDCN-89HSKF$$$JDCN-8HLNAZ$$$JDCN-89HSL4$$$JDCN-89HSLR$$$JDCN-89HSME$$$JDCN-89HSN3$$$JDCN-89HSNQ$$$JDCN-89HSPD$$$JDCN-89HSQ2$$$JDCN-89HSQP$$$JDCN-89HSRC$$$JDCN-89HSRZ$$$JDCN-89HRXR$$$JDCN-89HSSN$$$JDCN-89HSTB$$$JDCN-89HSTY$$$JDCN-89HSUM$$$JDCN-AN9ENE$$$JDCN-89HSVA$$$JDCN-89HSVX$$$JDCN-8EGQEM$$$JDCN-89HSWL$$$JDCN-89HSX9$$$JDCN-89HSXW$$$JDCN-89HSYK$$$JDCN-89HSZ8$$$JDCN-89HSZV$$$JDCN-89HT2J$$$JDCN-89HT38$$$JDCN-89HT3V$$$JDCN-89HT4J$$$UKWE-8CEb2F$$$JDCN-89HT5U$$$JDCN-89HT6H$$$JDCN-89HT77$$$JDCN-89HT7U$$$JDCN-89HT8H$$$JDCN-89HT96$$$JDCN-8HLRL5$$$JDCN-89HT9T$$$JDCN-97XLRC$$$JDCN-89HTAG$$$JDCN-89HTB5$$$JDCN-89HTCF$$$JDCN-89HTD4$$$JDCN-89HTDR$$$JDCN-89HTEE$$$JDCN-89HTF3$$$JDCN-89HTFR$$$JDCN-89HTGE$$$JDCN-89HTH3$$$JDCN-89HTHQ$$$JDCN-89HTJD$$$JDCN-89HTK2$$$JDCN-89HTKP$$$JDCN-89HTLC$$$JDCN-89HTLZ$$$JDCN-89HTMN$$$JDCN-89HTNB$$$JDCN-89HTNY$$$JDCN-8UPFL5$$$JDCN-89HTVJ$$$JDCN-89HTW7$$$JDCN-89HTPM$$$JDCN-89HTQA$$$JDCN-89HTQX$$$JDCN-89HTRL$$$JDCN-8FWGMB$$$JDCN-89HTS9$$$JDCN-89HTSW$$$JDCN-89HTTK$$$UKWE-8CDMS7$$$JDCN-89HTUV$$$JDCN-89HTWU$$$JDCN-89HTXH$$$JDCN-89HTY6$$$JDCN-89HTZG$$$JDCN-89HU25$$$JDCN-89HU2S$$$JDCN-89HU3F$$$JDCN-8VDJC3$$$JDCN-89HU44$$$JDCN-8V8FQH$$$JDCN-89HU4R$$$JDCN-89HU5E$$$JDCN-89HU63$$$JDCN-89HU6Q$$$JDCN-89HU7D$$$JDCN-89HU82$$$JDCN-89HU8P$$$JDCN-89HU9C$$$JDCN-89HU9Z$$$JDCN-89HUAN$$$JDCN-89HUBB$$$JDCN-9LFTHP$$$JDCN-89HUBY Afghanistan$$$Barbuda$$$Herzegovina$$$Cape Verde$$$Republic of Cameroon$$$People's Republic of China$$$Peoples Republic of China$$$Democratic Republic of the Congo$$$DRC$$$Republic of Congo$$$Curacao$$$Commonwealth of Dominica$$$Channel Islands$$$Channel Islands$$$South Korea$$$Republic of Korea$$$Laos$$$Republic of Lebanon$$$The Netherlands$$$PNG$$$Russia$$$Nevis$$$St. Kitts and Nevis$$$St Kitts and Nevis$$$St. Lucia$$$St Lucia$$$St. Maarten$$$St Maarten$$$Slovakia$$$SA$$$Tobago$$$Republic of Turkey$$$UAE$$$Great Britain$$$UK$$$Britain$$$Whales$$$Northern Ireland$$$England$$$US$$$U.S.$$$U.S.A.$$$USA$$$Republic of Uruguay$$$Republic of Uzbekistan$$$Republic of Zambia

India Corporate - Withholding taxes

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There is an obligation on the payer (either resident or non-resident) of income to withhold tax when certain specified payments are credited and/or paid. Some of the expenses that require tax withholding are as follows.

Payments to resident companies

Nature of payment Payment threshold for WHT (INR) (1) WHT rate (%)
Specified type of interest None 10
Non-specified type of interest 5,000 (2) 10
Professional or technical service 30,000 10
Commission and brokerage 5,000 5
Rent of plant, machinery, or equipment 180,000 2
Rent of land, building, or furniture 180,000 10
Contractual payment (except for individual/HUF) 30,000 (single payment) 100,000 (aggregate payment) 2
Contractual payment to individual/HUF 30,000 (single payment) 100,000 (aggregate payment) 1
Royalty or fees for technical services 30,000 10
Deemed dividend 2,500 10

Notes

  1. Payments have different threshold limits. The payer is only required to withhold tax if the total payment within a tax year to a single person (except where specified otherwise) is above the limits specified above.
  2. The threshold limit for WHT for non-specified type of interest is INR 5,000, except in the case of interest received from a bank, co-operative society, or deposit with post office, for which it is INR 10,000.

If the Permanent Account Number (PAN) of the deductee is not quoted, the rate of WHT will be the rate specified in relevant provisions of the Income Tax Act, the rates in force, or the rate of 20%, whichever is higher.

The definition of ‘royalty’ also includes consideration for use of, or right to use, computer software. Transfer of all or any rights in respect of any right, property, or information includes transfer of all or any right to use computer software (including granting of a licence), irrespective of the medium through which such a right is transferred and irrespective of whether any right or property is located in India. Hence, while applying WHT on such payments in the nature of royalty, one needs to consider the definition of royalty as amended by the Budget 2012 with retrospective effect from 1 June 1976.

Payment to non-resident companies

Nature of payment WHT rate (%)
Interest on foreign currency (subject to conditions) 5
Interest on money borrowed in foreign currency under a loan agreement or by way of long-term infrastructure bonds (or rupee denominated bonds) 5
Interest on investment in long-term infrastructure bonds issued by Indian company (rupee denominated bonds or government security) 5
Non-specified type of interest 20
Royalty and technical fees 10
Long-term capital gains other than exempt income 20
Income by way of winning from horse races 30
Other income 40

Notes

  • Percentage to be increased by a surcharge, education cess, and secondary and higher education cess to compute the effective rate of tax withholding.
  • Income from units of specified mutual funds is exempt from tax in the hands of the unit-holders.
  • Dividends received from Indian companies are tax-free in the hands of the shareholder.
  • Short-term capital gains on transfer of shares of a company or units of an equity-oriented fund would be taxable at 15% if they have been subjected to STT.
  • Long-term capital gains on transfer of shares (through stock exchange) in listed companies or units of an equity-oriented fund are exempt from tax if they have been subjected to STT.
  • There is no threshold for payment to non-resident companies up to which no tax is required to be withheld.
  • If the PAN of the deductee is not quoted, the rate of WHT will be the rate specified in relevant provisions of the Act, the rates in force, or the rate of 20%, whichever is higher. The government has notified rules that do not mandate quoting of PAN, subject to certain conditions.
  • The payer is obligated to report specific information in the prescribed form (whether or not such payment is chargeable to tax).

Equalisation levy

Action Plan 1 (Digital Economy) of the OECD’s BEPS project discussed several options to tackle direct tax challenges in the digital environment. Taking cues from this, an equalisation levy is available, the summary of which is as follows:

  • Rate of levy: 6% of the amount of consideration for specified service.
  • Meaning of ‘specified service’: Online advertisement, any provision for digital advertising space, or any other facility or service for the purpose of online advertisement, which includes any other service as may be notified by the Central Government in this regard.
  • On whom: Non-resident receiving consideration for specified services from:
    • a person resident in India and carrying on business or profession, or
    • a non-resident having a PE in India.
  • Exemption from income tax: The income arising to the non-resident from the specified service and chargeable to an equalisation levy will be exempt from income tax.
  • Due date for deposit: 7th day of the following month.
  • Non-applicability in specified cases: Equalisation levy will not be charged in the following cases:
    • the non-resident providing specified service has a PE in India and the specified service is effectively connected with the PE
    • the aggregate consideration received or receivable in the previous year by the non-resident does not exceed INR 100,000, or
    • the payment for the specified service by the Indian resident or PE is not for conducting business or a profession in India.

Treaty rates

Some tax treaties provide for lower WHT rates from certain types of income, as follows:

There is an obligation on the payer (either resident or non-resident) of income to withhold tax when certain specified payments are credited and/or paid. Some of the expenses that require tax withholding are as follows.

Payments to resident companies

Recipient WHT (%)
Dividend (1) Interest Royalty (12) Fee for technical services (12)
Albania 10 10 10 10
Armenia 10 10 10 10
Australia 15 15 10/15 (2) 10/15
Austria 10 10 10 10
Bangladesh 10 (3)/15 10 10 N/A (5)
Belarus 10 (9)/15 10 15 15
Belgium 15 10 (11)/15 20 10
Bhutan 10 10 10 10
Botswana 7.5 (9)/10 10 10 10
Brazil 15 15 25 (15)/15 15
Bulgaria 15 15 15 (7)/20 20
Canada 15 (3)/25 15 10 (2)/15 10 (2)/15
China (People’s Republic of China) 10 10 10 10
Chinese Taipei (Taiwan) 12.5 10 10 10
Colombia 5 10 10 10
Croatia 5/15 10 10 10
Cyprus 10 10 10 10/15
Czech Republic 10 10 10 10
Denmark 15 (9)/25 10 (11)/15 20 20
Egypt N/A (5) N/A (5) N/A (5) N/A (5)
Estonia 10 10 10 10
Ethiopia 7.5 10 10 10
Fiji 5 10 10 10
Finland 10 10 10/15 10
France 15 (6) 0/10/15 (6) 20 (6) 10 (6)
Georgia 10 10 10 10
Germany 10 10 10 10
Greece N/A (14) N/A (14) N/A (14) N/A (5)
Hungary 10 (6) 10 (6) 10 (6) 10 (6)
Iceland 10 10 10 10
Indonesia 10 (9) 10 10 N/A (5)
Ireland 10 10 10 10
Israel 10 10 10 10
Italy 15 (3)/25 15 20 20
Japan 10 10 10 10
Jordan 10 10 20 20
Kazakhstan 10 10 10 10
Kenya 15 15 20 17.5
Korea, Republic of 15 (4) 10 (13) 10 15
Kuwait 10 10 10 10
Kyrgyz Republic 10 10 15 15
Latvia 10 10 10 10
Libya N/A (14) N/A (14) N/A (14) N/A (5)
Lithuania 5 (3)/15 10 10 10
Luxembourg 10 10 10 10
Macedonia 10 10 10 10
Malaysia 5 10 10 10
Malta 10 10 10 10
Mauritius 5 (3)/15 7.5 (14) 15 N/A (5)
Mexico 10 10 10 10
Mongolia 15 15 15 15
Montenegro 5 (9)/15 10 10 10
Morocco 10 10 10 10
Mozambique 7.5 10 10 N/A (5)
Myanmar 5 10 10 N/A (5)
Namibia 10 10 10 10
Nepal 5 (3)/10 10 15 N/A (5)
Netherlands 15 (6) 10 (6)/15 20 10 (6)
New Zealand 15 10 10 10
Norway 10 10 10 10
Oman 10 (3)/12.5 10 15 15
Philippines 15 (3)/20 10 (13)/15 15 N/A (5)
Poland 10 10 15 15
Portugal 10 (9)/15 10 10 10
Qatar 5 (3)/10 10 10 10
Romania 10 10 10 10
Russian Federation 10 10 10 10
Saudi Arabia 5 10 10 N/A (5)
Serbia 5 (9)/15 10 10 10
Singapore 10 (9)/15 10 (11)/15 10 10
Slovenia 5 (3)/15 10 10 10
South Africa 10 10 10 10
Spain 15 15 10 (6)/20 20 (6)
Sri Lanka 7.5 10 10 10 (6)
Sudan 10 10 10 10
Sweden 10 (6) 10 (6) 10 (6) 10 (6)
Switzerland 10 10 10 10
Syria 5 (3)/10 10 10 N/A (5)
Tajikistan 5 (3)/10 10 10 N/A (5)
Tanzania 5/10 (3) 10 10 N/A (16)
Thailand 10 10 10 N/A (5)
Trinidad & Tobago 10 10 10 10
Turkey 15 10 (11)/15 15 15
Turkmenistan 10 10 10 10
Uganda 10 10 10 10
Ukraine 10 (9)/15 10 10 10
United Arab Emirates 10 5 (11)/12.5 10 N/A (5)
United Kingdom 10/15 0/10 (13)/15 10 (2)/15 10 (2)/15
United States 15/25 10/15 10/15 10/15
Uruguay 5 10 10 10
Uzbekistan 10 10 10 10
Vietnam 10 10 10 10
Zambia
Nature of payment Payment threshold for WHT (INR) (1) WHT rate (%)
Specified type of interest None 10
Non-specified type of interest 5,000 (2) 10
Professional or technical service 30,000 10
Commission and brokerage 5,000 5
Rent of plant, machinery, or equipment 180,000 2
Rent of land, building, or furniture 180,000 10
Contractual payment (except for individual/HUF) 30,000 (single payment) 100,000 (aggregate payment) 2
Contractual payment to individual/HUF 30,000 (single payment) 100,000 (aggregate payment) 1
Royalty or fees for technical services 30,000 10
Deemed dividend 2,500 10

Notes

  1. Payments have different threshold limits. The payer is only required to withhold tax if the total payment within a tax year to a single person (except where specified otherwise) is above the limits specified above.
  2. The threshold limit for WHT for non-specified type of interest is INR 5,000, except in the case of interest received from a bank, co-operative society, or deposit with post office, for which it is INR 10,000.

If the Permanent Account Number (PAN) of the deductee is not quoted, the rate of WHT will be the rate specified in relevant provisions of the Income Tax Act, the rates in force, or the rate of 20%, whichever is higher.

The definition of ‘royalty’ also includes consideration for use of, or right to use, computer software. Transfer of all or any rights in respect of any right, property, or information includes transfer of all or any right to use computer software (including granting of a licence), irrespective of the medium through which such a right is transferred and irrespective of whether any right or property is located in India. Hence, while applying WHT on such payments in the nature of royalty, one needs to consider the definition of royalty as amended by the Budget 2012 with retrospective effect from 1 June 1976.

Payment to non-resident companies

Nature of payment WHT rate (%)
Interest on foreign currency (subject to conditions) 5
Interest on money borrowed in foreign currency under a loan agreement or by way of long-term infrastructure bonds (or rupee denominated bonds) 5
Interest on investment in long-term infrastructure bonds issued by Indian company (rupee denominated bonds or government security) 5
Non-specified type of interest 20
Royalty and technical fees 10
Long-term capital gains other than exempt income 20
Income by way of winning from horse races 30
Other income 40

Notes

  • Percentage to be increased by a surcharge, education cess, and secondary and higher education cess to compute the effective rate of tax withholding.
  • Income from units of specified mutual funds is exempt from tax in the hands of the unit-holders.
  • Dividends received from Indian companies are tax-free in the hands of the shareholder.
  • Short-term capital gains on transfer of shares of a company or units of an equity-oriented fund would be taxable at 15% if they have been subjected to STT.
  • Long-term capital gains on transfer of shares (through stock exchange) in listed companies or units of an equity-oriented fund are exempt from tax if they have been subjected to STT.
  • There is no threshold for payment to non-resident companies up to which no tax is required to be withheld.
  • If the PAN of the deductee is not quoted, the rate of WHT will be the rate specified in relevant provisions of the Act, the rates in force, or the rate of 20%, whichever is higher. The government has notified rules that do not mandate quoting of PAN, subject to certain conditions.
  • The payer is obligated to report specific information in the prescribed form (whether or not such payment is chargeable to tax).

Equalisation levy

Action Plan 1 (Digital Economy) of the OECD’s BEPS project discussed several options to tackle direct tax challenges in the digital environment. Taking cues from this, an equalisation levy is available, the summary of which is as follows:

  • Rate of levy: 6% of the amount of consideration for specified service.
  • Meaning of ‘specified service’: Online advertisement, any provision for digital advertising space, or any other facility or service for the purpose of online advertisement, which includes any other service as may be notified by the Central Government in this regard.
  • On whom: Non-resident receiving consideration for specified services from:
    • a person resident in India and carrying on business or profession, or
    • a non-resident having a PE in India.
  • Exemption from income tax: The income arising to the non-resident from the specified service and chargeable to an equalisation levy will be exempt from income tax.
  • Due date for deposit: 7th day of the following month.
  • Non-applicability in specified cases: Equalisation levy will not be charged in the following cases:
    • the non-resident providing specified service has a PE in India and the specified service is effectively connected with the PE
    • the aggregate consideration received or receivable in the previous year by the non-resident does not exceed INR 100,000, or
    • the payment for the specified service by the Indian resident or PE is not for conducting business or a profession in India.

Treaty rates

Some tax treaties(17) provide for lower WHT rates from certain types of income, as follows:

Recipient WHT (%)
Dividend (1) Interest Royalty (12) Fee for technical services (12)
Albania 10 10 10 10
Armenia 10 10 10 10
Australia 15 15 10/15 (2) 10/15
Austria 10 10 10 10
Bangladesh 10 (3)/15 10 10 N/A (5)
Belarus 10 (9)/15 10 15 15
Belgium 15 10 (11)/15 20 10
Bhutan 10 10 10 10
Botswana 7.5 (9)/10 10 10 10
Brazil 15 15 25 (15)/15 15
Bulgaria 15 15 15 (7)/20 20
Canada 15 (3)/25 15 10 (2)/15 10 (2)/15
China (People’s Republic of China) 10 10 10 10
Chinese Taipei (Taiwan) 12.5 10 10 10
Colombia 5 10 10 10
Croatia 5/15 10 10 10
Cyprus 10 10 10 10/15
Czech Republic 10 10 10 10
Denmark 15 (9)/25 10 (11)/15 20 20
Egypt N/A (5) N/A (5) N/A (5) N/A (5)
Estonia 10 10 10 10
Ethiopia 7.5 10 10 10
Fiji 5 10 10 10
Finland 10 10 10/15 10
France 15 (6) 0/10/15 (6) 20 (6) 10 (6)
Georgia 10 10 10 10
Germany 10 10 10 10
Greece N/A (14) N/A (14) N/A (14) N/A (5)
Hungary 10 (6) 10 (6) 10 (6) 10 (6)
Iceland 10 10 10 10
Indonesia 10 (9) 10 10 N/A (5)
Ireland 10 10 10 10
Israel 10 10 10 10
Italy 15 (3)/25 15 20 20
Japan 10 10 10 10
Jordan 10 10 20 20
Kazakhstan 10 10 10 10
Kenya 15 15 20 17.5
Korea, Republic of 15 (4) 10 (13) 10 15
Kuwait 10 10 10 10
Kyrgyz Republic 10 10 15 15
Latvia 10 10 10 10
Libya N/A (14) N/A (14) N/A (14) N/A (5)
Lithuania 5 (3)/15 10 10 10
Luxembourg 10 10 10 10
Macedonia 10 10 10 10
Malaysia 5 10 10 10
Malta 10 10 10 10
Mauritius 5 (3)/15 7.5 (14) 15 N/A (5)
Mexico 10 10 10 10
Mongolia 15 15 15 15
Montenegro 5 (9)/15 10 10 10
Morocco 10 10 10 10
Mozambique 7.5 10 10 N/A (5)
Myanmar 5 10 10 N/A (5)
Namibia 10 10 10 10
Nepal 5 (3)/10 10 15 N/A (5)
Netherlands 15 (6) 10 (6)/15 20 10 (6)
New Zealand 15 10 10 10
Norway 10 10 10 10
Oman 10 (3)/12.5 10 15 15
Philippines 15 (3)/20 10 (13)/15 15 N/A (5)
Poland 10 10 15 15
Portugal 10 (9)/15 10 10 10
Qatar 5 (3)/10 10 10 10
Romania 10 10 10 10
Russian Federation 10 10 10 10
Saudi Arabia 5 10 10 N/A (5)
Serbia 5 (9)/15 10 10 10
Singapore 10 (9)/15 10 (11)/15 10 10
Slovenia 5 (3)/15 10 10 10
South Africa 10 10 10 10
Spain 15 15 10 (6)/20 20 (6)
Sri Lanka 7.5 10 10 10 (6)
Sudan 10 10 10 10
Sweden 10 (6) 10 (6) 10 (6) 10 (6)
Switzerland 10 10 10 10
Syria 5 (3)/10 10 10 N/A (5)
Tajikistan 5 (3)/10 10 10 N/A (5)
Tanzania 5/10 (3) 10 10 N/A (16)
Thailand 10 10 10 N/A (5)
Trinidad & Tobago 10 10 10 10
Turkey 15 10 (11)/15 15 15
Turkmenistan 10 10 10 10
5 (10)/15 10 10 10

Notes

  1. The treaty tax rates on dividends are not relevant since, under the current Indian tax legislation, most dividend income from Indian companies that is subject to DDT is exempt from income tax in the hands of the recipient.
  2. 10% for equipment rental and ancillary services:
    • for other cases in the first five years: 15% if government or specified organisation is the payer and 20% for other payers.
    • for subsequent years: 15% in all cases (income of government organisations is exempt from taxation in the country of source).
  3. If at least 10% of capital is owned by the beneficial owner (company) of the company paying the dividend or interest.
  4. If at least 20% of capital is owned by the beneficial owner (company) of the company paying dividend or interest.
  5. In absence of specific provision, it may be treated as business profits or independent personal services under respective treaties, whichever is applicable.
  6. The ‘most favoured nation’ clause is applicable. The protocol to the treaty limits the scope and rate of taxation to that specified in similar articles in treaties signed by India with an OECD-member country or another country.
  7. If royalty relates to copyrights of literary, artistic, or scientific work.
  8. If the company paying the dividend is engaged in an industrial undertaking.
  9. If at least 25% of capital is owned by the beneficial owner (company) of the company paying the dividend.
  10. If at least 25% of capital is owned by the company during at least six months before date of payment.
  11. If paid on a loan granted by a bank/financial institution.
  12. The tax rate for royalties and fees for technical services, under the domestic tax laws, is 10%. This rate is to be increased by a surcharge at 2.5% on the income tax and education cess at 2% and secondary and higher secondary education cess at 1% on the income tax including surcharge. As a consequence, the effective tax rate is 10.558%. This rate applies for payments made under an agreement entered into on or after 1 June 2005. Accordingly, a tax resident can either use the treaty rate or domestic tax rate, whichever is more beneficial.
  13. If interest is received by a financial institution.
  14. Taxable in the country of source as per domestic tax rates.
  15. If royalty payments arise from the use or right to use trademarks.
  16. Tax treaties of certain countries do not have a separate clause specifying the WHT rate for fees for technical services and fees for included services.
  17. India has signed a comprehensive tax treaty with Hong Kong Special Administrative Region (HKSAR) of China but the same is yet to be notified.

List of limited agreements between India and other countries

A list of the countries with which India has entered into limited agreements for double taxation relief with respect to income of airlines/merchant shipping, is given here.

Afghanistan Lebanon Pakistan
Ethiopia Maldives Sri Lanka
Iran Nepal

Tax information exchange agreements (TIEAs) between India and other countries

A list of the countries with which India has entered into TIEAs for effective exchange of information relating to tax matters is given below. In addition, several of the comprehensive treaties signed by India have an information exchange clause (usually clause) that has the same effect as signing of a TIEA. These are not listed here.

Argentina Gibraltar Macau, China
Bahamas Guernsey Maldives
Bahrain Isle of Man Saint Kitts and Nevis
Belize Jersey San Marino
Bermuda Principality of Liechtenstein Seychelles
British Virgin Islands Principality of Monaco
Cayman Islands Liberia  

Last Reviewed - 07 December 2017

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