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Withholding Tax Rates in India [As amended by Finance Act, 2016]

A person responsible for making payment to non-resident or foreign company is required to withhold tax. Tax is deductible at the rates prescribed under the Act or under the relevant DTAA, whichever is more beneficial for non-resident. This write up provides all such rates as prescribed under various Double Taxation Avoidance Agreements entered into between Indian and various foreign countries.


Country

Dividend

(not being covered under Section 115-O)

Interest

Royalty

Fee for Technical Services

Albania

10%

10%[Note1]

10%

10%

Armenia

10%

10% [Note1]

10%

10%

Australia

15%

15%

10%/15%

[Note 2]

10%/15%

[Note 2]

Austria

10%

10% [Note1]

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

10% [Note1]

10%

No separate provision

Belarus

a) 10%, if paid to a company holding 25% shares;

b) 15%, in all other cases

10% [Note1]

15%

15%

Belgium

15%

15% (10% if loan is granted by a bank)

10%

10%

Bhutan

10%

10% [Note 1]

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

10% [Note1]

10%

10%

Brazil

15%

15% [Note1]

a) 25% for use of trademark;

b) 15% for others

15%

Bulgaria

15%

15% [Note1]

a) 15% of royalty relating to literary, artistic, scientific works other than films or tapes used for radio or television broadcasting;

b) 20%, in other cases

20%

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

15% [Note1]

10%-15%

10%-15%

China

10%

10% [Note1]

10%

10%

Columbia

5%

10% [Note1]

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

10% [Note1]

10%

10%

Cyprus

a) 10%, if at least 10% of the capital of the company paying dividend is held by the recipient company;

b) 15%, in all other cases

10% [Note1]

15%

15%/10%

Czech Republic [Note5]

10%

10% [Note1]

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

a) 10% if loan is granted by bank;

b) 15% for others [Note1]

20%

20%

Estonia

10%

10% [Note1]

10%

10%

Ethiopia

7.5%

10% [Note1]

10%

10%

Finland

10%

10% [Note1]

10%

10%

Fiji

5%

10% [Note 1]

10%

10%

France

10%

10% [Note1]

10%

10%

Georgia

10%

10% [Note1]

10%

10%

Germany

10%

10% [Note1]

10%

10%

Hungary

10%

10% [Note1]

10%

10%

Indonesia

10%

10% [Note1]

10%

10%

Iceland

10%

10% [Note1]

10%

10%

Ireland

10%

10% [Note1]

10%

10%

Israel

10%

10% [Note1]

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

15% [Note1]

20%

20%

Japan

10%

10% [Note1]

10%

10%

Jordan

10%

10% [Note1]

20%

20%

Kazakhstan

10%

10% [Note1]

10%

10%

Kenya

15%

15% [Note1]

20%

17.5%

Korea

a) 15%, if at least 20% of the capital of the company paying dividend is held by the recipient company;

b) 20%, in other cases

a) 10%, if interest is paid to a bank;

b) 15%, for others

[Note1]

15%

15%

Kuwait

10% [Note 1]

10%

10%

10%

Kyrgyz Republic

10%

10% [Note1]

15%

15%

Latvia

10%

10% [Note1]

10%

10%

Lithuania

5%*, 15%

10% [Note1]

10%

10%

Luxembourg

10%

10% [Note1]

10%

10%

Malaysia

5%

10% [Note1]

10%

10%

Malta

10%

10% [Note1]

10%

10%

Mongolia

15%

15% [Note1]

15%

15%

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

No Rates Specified

15%

No separate provision

Montenegro

5% (in some cases 15%)

10% [Note1]

10%

10%

Myanmar

5%

10% [Note1]

10%

No separate provision

Morocco

10%

10% [Note1]

10%

10%

Mozambique

7.5%

10% [Note1]

10%

No separate provision

Macedonia

10%

10% [Note 1]

10%

10%

Namibia

10%

10% [Note1]

10%

10%

Nepal

5%**, 10%

10% [Note1]

15%

No separate provision

Netherlands

10%

10% [Note1]

10%

10%

New Zealand

15%

10% [Note1]

10%

10%

Norway

10%

10% [Note1]

10%

10%

Oman