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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
a) 10%, if at least 10% of shares are held by the recipient company;
b) 12.5%, in other cases
10% [Note1]
15%
15%
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
a) 10%, if interest is received by a financial institution or insurance company;
b) 15% in other cases
[Note1]
15% if it is payable in pursuance of any collaboration agreement approved by the Government of India
No separate provision
Poland
10%
10% [Note1]
15%
15%
Portuguese Republic
10%***/15%
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
10% [Note1]
10%
10%
Romania
10%
10% [Note1]
10%
10%
Russian Federation
10%
10% [Note1]
10%
10%
Saudi Arabia
5%
10% [Note1]
10%
No separate provision
Serbia
a) 5%, if recipient is company and holds 25% shares;
b) 15%, in any other case
10% [Note1]
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
a) 10%, if loan is granted by a bank or similar institute including an insurance company;
b) 15%, in all other cases
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
10%
10%
10%
South Africa
10%
10% [Note1]
10%
10%
Spain
15%
15% [Note1]
10%/20%
[Note 3]
20%
[Note 3]
Sri Lanka
7.5%
10% [Note1]
10%
10%
Sudan
10%
10%[Note1]
10%
10%
Sweden
10%
10% [Note1]
10%
10%
Swiss Confederation
10%
10%[Note1]
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
10%[Note1]
10%
No separate provision
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
10%[Note1]
10%
No separate provision
Tanzania
5%****, 10%
10%
10%
No separate provision
Thailand
10%
10% [Note1]
10%
No separate provision
Trinidad and Tobago
10%
10% [Note1]
10%
10%
Turkey
15%
a) 10% if loan is granted by a bank, etc.;
b) 15% in other cases
[Note1]
15%
15%
Turkmenistan
10%
10% [Note1]
10%
10%
Uganda
10%
10%[Note1]
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
10% [Note1]
10%
10%
United Arab Emirates
10%
a) 5% if loan is granted by a bank/similar financial institute;
b) 12.5%, in other cases
10%
No separate provision
United Mexican States
10%
10% [Note1]
10%
10%
United Kingdom
15%/10%
(Note 4)
a) 10%, if interest is paid to a bank;
b) 15%, in other cases
[Note1]
10%/15%[Note 2]
10%/15%[Note 2]
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
a) 10% if loan is granted by a bank/similar institute including insurance company;
b) 15% for others
10%/15%[Note 2]
10%/15%[Note 2]
Uruguay
5%
10% [Note1]
10%
10%
Uzbekistan
10%
10% [Note1]
10%
10%
Vietnam
10%
10% [Note1]
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
10% [Note1]
10%
10%


Source: Income Tax Portal
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