Tax rates as per Income Tax Act vis a vis Tax Treaties (DTAA)- [As amended by Finance Act, 2020]
Certain income of non-resident, inter-alia, dividend, interest, royalty or fees for technical services shall be taxable as per the rates prescribed under the Income-tax Act or as per the rates prescribed under the DTAAs, whichever is more beneficial to such non-resident. This write up provides all such rates as prescribed under the Act and under various DTAAs entered into between Indian and various foreign countries.
|
Country |
Dividend (not being covered under Section 115-O)
|
Interest
|
Royalty
|
Fee for Technical Services
|
||||
|
|
Tax Treaty |
I-T Act (Note 6) |
Tax Treaty |
I-T Act (Note 7) |
Tax Treaty |
I-T Act (Note 4) |
Tax Treaty |
I-T Act (Note 4) |
|
Albania |
10% |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Armenia |
10% |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Australia |
15% |
20%/10% |
15% |
20%/10%/5% |
10%/15% [Note 2] |
10% |
10%/15% [Note 2] |
10% |
|
Austria |
10% |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Bangladesh |
a) 10% (if at least 10% of the capital of the company paying the dividend is held by the recipient company); b) 15% in all other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
Belarus |
a) 10%, if paid to a company holding 25% shares; b) 15%, in all other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
15% |
10% |
15% |
10% |
|
Belgium |
15% |
20%/10% |
15% (10% if loan is if granted by a bank) |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Bhutan |
10% |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Botswana |
a) 7.5%, if shareholder is a company and holds at least 25% shares in the investee-company; b) 10%, in all other cases |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Brazil |
15% |
20%/10% |
15% [Note1] |
20%/10%/5% |
25% for use of trademark; 15% for others |
10% |
No separate provision |
10% |
|
Bulgaria |
15% |
20%/10% |
15% [Note1] |
20%/10%/5% |
15% of royalty relating to literary, artistic, scientific works other than films or tapes used for radio or television broadcasting; 20% in other cases |
10% |
20% |
10% |
|
Canada |
a) 15%, if at least 10% of the voting powers in the company, paying the dividends, is controlled by the recipient company; b) 25%, in other cases |
20%/10% |
15% [Note1] |
20%/10%/5% |
15%-20% |
10% |
15%-20% |
10% |
|
China |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Columbia |
5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Croatia |
a) 5% (if at least 10% of the capital of the company paying the dividend is held by the recipient company); b) 15% in all other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Cyprus |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Czech Republic [Note8] |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Denmark |
a) 15%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 25%, in other cases |
20%/10% |
a) 10% if loan is granted by bank; b) 15% for others [Note1] |
20%/10%/5% |
20% |
10% |
20% |
10% |
|
Estonia |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Ethiopia |
7.5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Finland |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Fiji |
5% |
20%/10%` |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
France |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Georgia |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Germany |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Hongkong |
5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Hungary |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Indonesia |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Iceland |
10% |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Ireland |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Israel |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Italy |
a) 15% if at least 10% of the shares of the company paying dividend is beneficially owned by the recipient company; b) 25% in other cases |
20%/10% |
15% [Note1] |
20%/10%/5% |
20% |
10% |
20% |
10% |
|
Japan |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Jordan |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
20% |
10% |
20% |
10% |
|
Kazakhstan |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Kenya |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Korea |
15% |
20%/10% |
10% |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Kuwait |
10% [Note 1] |
20%/10% |
10% |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Kyrgyz Republic |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
15% |
10% |
15% |
10% |
|
Latvia |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Lithuania |
5%*, 15% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Luxembourg |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Malaysia |
5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Malta |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Mongolia |
15% |
20%/10% |
15% [Note1] |
20%/10%/5% |
15% |
10% |
15% |
10% |
|
Mauritius |
a) 5%, if at least 10% of the capital of the company paying the dividend is held by the recipient company; b) 15%, in other cases |
20%/10% |
7.5% |
20%/10%/5% |
15% |
10% |
10% |
10% |
|
Montenegro |
5% (in some cases 15%) |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Myanmar |
5% |
20%/10% |
10%[Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
Morocco |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Mozambique |
7.5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
| Macedonia | 10% | 20%/10% | 10% [Note 1] | 20%/10%/5% | 10% | 10% | 10% | 10% |
|
Namibia |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Nepal |
5%**, 10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
15% |
10% |
No separate provision |
10% |
|
Netherlands |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
New Zealand |
15% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Norway |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Oman |
a) 10%, if at least 10% of shares are held by the recipient company; b) 12.5%, in other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
15% |
10% |
15% |
10% |
|
Philippines |
a) 15%, if at least 10% of the shares of the company paying the dividend is held by the recipient company; b) 20%, in other cases |
20%/10% |
a) 10%, if interest is received by a financial institution or insurance company; b) 15% in other cases [Note1] |
20%/10%/5% |
15% if it is payable in pursuance of any collaboration agreement approved by the Government of India |
10% |
No separate provision |
10% |
|
Poland |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
15% |
10% |
15% |
10% |
|
Portuguese Republic |
10%***/15% |
20%/10% |
10% |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Qatar |
a) 5%, if at least 10% of the shares of the company paying the dividend is held by the recipient company; b) 10%, in other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Romania |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Russian Federation |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Saudi Arabia |
5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
Serbia |
a) 5%, if recipient is company and holds 25% shares; b) 15%, in any other case |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Singapore |
a) 10%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 15%, in other cases |
20%/10% |
a) 10%, if loan is granted by a bank or similar institute including an insurance company; b) 15%, in all other cases |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Slovenia |
a) 5%, if at least 10% of the shares of the company paying the dividend is held by the recipient company; b) 15%, in other cases |
20%/10% |
10% |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
South Africa |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Spain |
15% |
20%/10% |
15% [Note1] |
20%/10%/5% |
10%/20% [Note 3] |
10% |
20% [Note 3] |
10% |
|
Sri Lanka |
7.5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Sudan |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Sweden |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Swiss |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Syrian Arab Republic |
a) 5%, if at least 10% of the shares of the company paying the dividend is held by the recipient company; b) 10%, in other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
Tajikistan |
a) 5%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 10%, in other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
Tanzania |
5%****, 10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
Thailand |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
Trinidad and Tobago |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Turkey |
15% |
20%/10% |
a) 10% if loan is granted by a bank, etc.; b) 15% in other cases [Note1] |
20%/10%/5% |
15% |
10% |
15% |
10% |
|
Turkmenistan |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Uganda |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Ukraine |
a) 10%, if at least 25% of the shares of the company paying the dividend is held by the recipient company; b) 15%, in other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
United Arab Emirates |
10% |
20%/10% |
a) 5% if loan is granted by a bank/similar financial institute; b) 12.5%, in other cases |
20%/10%/5% |
10% |
10% |
No separate provision |
10% |
|
United Mexican States |
10% |
|
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
United Kingdom |
15%/10% (Note 5) |
20%/10% |
a) 10%, if interest is paid to a bank; b) 15%, in other cases [Note1] |
20%/10%/5% |
10%/15% [Note 2] |
10% |
10%/15% [Note 2] |
10% |
|
United States |
a) 15%, if at least 10% of the voting stock of the company paying the dividend is held by the recipient company; b) 25% in other cases |
20%/10% |
a) 10% if loan is granted by a bank/similar institute including insurance company; b) 15% for others |
20%/10%/5% |
10%/15%[Note 2] |
10% |
10%/15% [Note 2] |
10% |
|
Uruguay |
5% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Uzbekistan |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Vietnam |
10% |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
|
Zambia |
a) 5%, if at least 25% of the shares of the company paying the dividend is held by a recipient company for a period of at least 6 months prior to the date of payment of the dividend; b) 15% in other cases |
20%/10% |
10% [Note1] |
20%/10%/5% |
10% |
10% |
10% |
10% |
*If the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends.
**5% if beneficial owner of shares is a company and it holds at least 10% of shares of the company paying the dividends.
*** if the beneficial owner is a company that, for an uninterrupted period of two fiscal years prior to the payment of the dividend, owns directly at least 25 per cent of the capital stock of the company paying the dividends.
****5% if recipient company owns at least 25% share in the company paying the dividend.
1. Dividend/Interest earned by the Government and certain specified institutions, inter-alia, Reserve Bank of India is exempt from taxation in the country of source.
2. Royalties and fees for technical services would be taxable in the country of source at the rates prescribed for different categories of royalties and fees for technical services. These rates shall be subject to various conditions and nature of services/royalty for which payment is made. For detailed conditions refer to relevant Double Taxation Avoidance Agreements.
3. Royalties and fees for technical services would be taxable in the country of source at the following rates:
a. 10 per cent in case of royalties relating to the payments for the use of, or the right to use, industrial, commercial or scientific equipment;
b. 20 per cent in case of fees for technical services and other royalties.
4. From Assessment Year 2016-17, Royalty and fees for technical service received by a foreign company or a non-resident non-corporate assessee from government or an Indian concern shall be taxed at the rate of 10% if agreement is made at any time after 31 March 1976.
From Assessment Year 2017-18, any income of a person resident in India by way of royalty in respect of a patent developed and registered in India shall be taxable at the rate of 10% as per section 115BBF,
5. (a)15 per cent of the gross amount of the dividends where those dividends are paid out of income (including gains) derived directly or indirectly from immovable property within the meaning of Article 6 by an investment vehicle which distributes most of this income annually and whose income from such immovable property is exempted from tax;
(b) 10 per cent of the gross amount of the dividends, in all other cases
6. Dividend:
a) Rate of tax shall be 10% on income from Global Depository Receipts under Section 115AC(1)(b) of Income-tax Act, 1961 (other than dividends referred to in section 115-O).
b) Rate of tax shall be 20% under Section 115A on dividend (other than dividends referred to in section 115-O) received by a foreign company or a non-resident non-corporate assessee
c) Rate of tax shall be 20% under Section 115AD on dividend (other than dividends referred to in section 115-O) received by a Foreign institutional investor.
d) From Assessment Year 2017-18, dividend in excess of Rs. 10 lakh shall be chargeable to tax in the case of an individual, Hindu undivided family (HUF) or a firm who is resident in India, at the rate of 10% as per section 115BBDA.
e) From Assessment Year 2018-19, dividend in excess of Rs. 10 lakh shall be chargeable to tax in the case of person who is resident in India other than:
i) a domestic company; or
ii) a fund or institution or trust or any university or other educational institution or any hospital or other medical institution referred to in section 10(23C)(iv)/(v)/(vi)/(via); or
iii) a trust or institution registered under section 12AA.
at the rate of 10% as per section 115BBDA.
7. Interest
a) Rate of tax shall be 20% under Section 115A on interest received by a foreign company or a non-resident non-corporate assessee from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency.
b) Rate of tax shall be 10% under Section 115AC on income from bonds of an Indian company issued in accordance with such scheme as the Central Government may, by notification in the Official Gazette, specify in this behalf, or on bonds of a public sector company sold by the Government, and purchased by non-resident in foreign currency
c) Rate of tax shall be 5% in following cases:
(i) Interest received from an infrastructure debt fund as referred to in section 10(47)
(ii) Interest received from an Indian company specified in section 194LC.
(iii) Interest of the nature and extent referred to in section 194LD (applicable from the assessment year 2014-15).
(iv) Distributed income being interest referred to in section 194LBA(2) (section 194LBA is inserted by the Finance (No. 2) Act, 2014 w.e.f. 01-10-2014)
8. The CBDT has clarified that DTAA signed with Government of the Czech Republic on the 27th January 1986 continues to be applicable to the residents of the Slovak Republic. [Notification No. 25, dated 23-03-2015]