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HomeIncome TaxCountry-wise Withholding tax rates/Chart as per DTAA

Country-wise Withholding tax rates/Chart as per DTAA

The person responsible for making payment to a non-resident or foreign company is required to withhold tax. The tax is deducted at the prescribed rates under the Act or under the respective DTAA, whichever is more profitable for the non-resident. This writing provides all the rates determined under various double taxation avoidance agreements entered into between Indian and various foreign countries.

Country-wise / Income Wise Withholding Tax Rate Chart for Financial Year 2020-21

Withholding tax rates

Country Dividend 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 No separate provision
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] 15%-20% 15%-20%
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 10% 10% [Note1] 10% 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%
Hongkong 5% 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 10% 10% 10% 10%
Korea 15% 10% 10% 10%
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 7.5 15% 10%
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%

*If the beneficial owner is a company (other than a partnership) which holds directly at least 10 percent of the capital of the company paying the dividends.

**5% if the 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 percent of the capital stock of the company paying the dividends.

****5% if the recipient company owns at least a 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 the source (subject to certain conditions).

2. Royalties and fees for technical services would be taxable in the country of the 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 the source at the following rates:

a. 10 percent in case of royalties relating to the payments for the use of, or the right to use, industrial, commercial or scientific equipment;

b. 20 percent in case of fees for technical services and other royalties.

4. (a) 15 percent 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 percent of the gross amount of the dividends, in all other cases

5. The CBDT has clarified that DTAA signed with the 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]

[As amended by Finance Act, 2020]

TaxClue Teamhttp://taxclue.in
Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building.

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