| Sl. No. |
Country DTAA between India and |
Effective date in India |
Tax rate on |
Remarks |
|||
|---|---|---|---|---|---|---|---|
|
Dividend (other than u/s. 115-O) (%) |
Interest (%) |
Royalties (%) See Note 4 |
Technical Service Fees (%) See Note 4 |
||||
|
1 |
Albania 355 ITR 80 |
01.04.2014 A. Y. 2015-16 |
10 @ |
10 @ |
10 @ |
10 @ |
Agreement between Republic of India and Republic of Albania was notified by way of Press Release dated 8 July 2013. |
|
2 |
Armenia 271 ITR 72 |
01.04.2005 A. Y. 2006-07 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities
is exempt (a) the Government, a political sub-division o r a local
authority; or (b) RBI and the Central Bank of Armenia or any other
institutions as may be agreed upon. For Limitation Of Benefits (‘LOB’) Clause – Refer Note 6. |
|
3 |
Australia 194 ITR 241 Modified via Protocol 358 ITR 15 |
01.04.1992 A.Y. 1993-94 |
15 @ |
15 @ |
[See Note 2] |
[See Note 2] |
Protocol amends Article 3 (Definitions), Article 5 (Permanent
Establishment), Article 7 (Business Profits), Article 24A
(Non-Discrimination), Article 26 (Exchange of Information) and Article
26A (Assistance in Collection of Taxes). |
|
4 |
Austria 251 ITR 97 |
01.04.2002 A.Y. 2003-04 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
5 |
Bangladesh 198 ITR 99 Modified via Protocol 355 ITR 97 |
01.04.1992 A.Y. 1993-94 |
10 @ 15 @ |
10 @ |
10 @ |
No separate provision |
10% tax on dividends if at least 10% of the capital is owned by Company; in other cases 15%. Protocol amends Article 21 (Students) and Article 28 (Exchange of Information). |
|
6 |
Belarus 233 ITR 4 |
01.04.1999 A.Y. 2000-01 |
10 @ 15 @ |
10 @ |
15 @ |
15 @ |
10% tax on dividends if at least 25% of the capital is directly and beneficially owned by a company; in other cases 15%. |
|
7 |
Belgium 228 ITR 79 247 ITR 39 |
01.04.1998 A.Y. 1999-2000 |
15 @ |
15 @ 10 @ |
10 @ |
10 @ |
10% tax on interest if loan granted by bank, other cases 15%.
10% tax on royalties and technical services fees w.e.f. 1.4.1998.
Modification also restricts scope of royalties. |
|
8 |
Bhutan Notification No. 42/2014 F.No. 503/4/2004-FTD-II dated 5 September 2014 |
01.04.2015 A.Y. 2016-17 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities
is exempt (a) the Government, a political sub-division or a local
authority of the other Contracting state; or (b) (i) in case of India,
the RBI and the Export-Import Bank of India or (ii) in case of Bhutan,
The Royal Monetary Authority and Bhutan Development Bank Limited (c) any
other institution as may be agreed upon from time to time between the
competent authorities of the Contracting states through exchange of
letters For Limitation Of Benefits (‘LOB’) Clause – Refer Note 5. |
|
9 |
Botswana 302 ITR 277 |
01.04.2009 A.Y. 2010-11 |
7.5 @ 10 @ |
10 @ |
10 @ |
10 @ |
7.5% tax on dividends if at least 25% of the capital is owned by Company; in other cases 10%. Interest derived and beneficially owned by following entities is exempt (a) the Government, a political sub-division or a local authority; or (b) Reserve Bank of India and the Central Bank of Botswana or any other bank or Governmental financial institutions or agencies that may be mutually agreed. |
|
10 |
Brazil 195 ITR 73 |
01.04.1993 A.Y. 1994-1995 |
15 @ |
15 @ |
25 @ 15 @ |
25 @ 15 @ Fees for Technical Services are covered under Royalty article as per protocol |
Royalties arising from use or right to use trademarks taxable at 25%, in other cases tax rate is 15%. |
|
11 |
Bulgaria 220 ITR 30 |
01.04.1996 A.Y. 1997-98 |
15 @ |
15 @ |
15 @ 20 @ |
20 @ |
Royalties relating to Copyrights etc. taxable at 15%, in all other cases 20@ |
|
12 |
Canada 229 ITR 44 |
01.04.1998 A.Y. 1999-2000 |
15 @ 25 @ |
15 @ |
[See Note 2] |
[See Note 2] |
15% tax on dividends if at least 10% of capital is owned by a Co., in other cases 25% |
|
13 |
China 214 ITR 160 |
01.04.1995 A.Y. 1996-97 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
14 |
Colombia Notification No. 44/2014 F.No. 501/3/99-FTD-II dated 23 September 2014 |
01.04.2015 A.Y. 2016-17 |
5 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities
is exempt (a) the Government, a political sub-division or a local or
territorial authority of the other Contracting state; or (b) (i) in case
of India, the RBI and the Export-Import Bank of India or (ii) in the
case of Colombia, the Banco de la Republica and the Bancoldex (c) any
other institution as may be agreed upon from time to time between the
competent authorities of the contracting states through exchange of
letters. For Limitation Of Benefits (‘LOB’) Clause – Refer Note 5. |
|
15 |
Croatia Notification No. 24/2015 F.No. 501/09/1995-FTD-I dated 17 March 2015 |
01.04.2016 A.Y. 2017-2018 |
5 @ 15 @ |
10 @ |
10 @ |
10 @ |
5% tax on dividends if at least 10% of the capital is directly
owned by the Company, in other cases 15%. Interest derived and
beneficially owned by following entities is exempt (i) the Government, a
political sub-division or a local authority of the other Contracting
state; or (ii) The Central Bank of the other Contracting state or any
other bank or governmental financial institutions / agencies that may be
mutually agreed upon between the two Contracting state. As per protocol
– notwithstanding the provisions of the agreement, a company resident
in the Contracting state in which persons who are not residents of that
state hold, directly or indirectly, a participation of more than 50% of
the share capital, shall not be entitled to relieves provided by the
agreement in respect of dividends, interest, royalties arising in the
other Contracting state. This provision shall not apply where the said
Company is engaged in substantive business operations, other than mere
holding of shares or property, in the Contracting state of which it is a
resident. |
|
16 |
Cyprus 218 ITR 70 |
01.04.1993 A.Y. 1994-95 |
10 @ 15 @ |
10 @ |
15 @ |
10 / 15* @ |
10% tax on dividends if at least 10% of the capital is owned by Company; in other cases 15%. * Technical Fees are taxable at 10% under Article 13, Fees for included services taxable at 15% under Article 12 |
|
17 |
Czech Republic 241 ITR 90 |
01.04.2000 A.Y. 2001-02 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
18 |
Denmark 180 ITR 1 |
01.04.1990 A.Y. 1991-92 |
15 @ 25 @ |
10 + 15 + |
20 @ |
20 @ |
15% tax on dividends if at least 25% of the capital is owned
by Company; in other cases 25%. Interest is taxable at 10% on loan from
bank; in other cases it is taxable at 15%. |
|
19 |
Estonia 346 ITR 143 |
01.04.2013 A.Y 2014-15 |
10 @ |
10 @ |
10 @ |
10@ |
Interest derived and beneficially owned by following entities is exempt
|
|
20 |
Ethiopia 353 ITR 78 |
01.04.2013 A.Y. 2014-15 |
7.5 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities is exempt
|
|
21 |
Fiji Notification No.35/2014/F.No 503/11/2005-FTD-II dated 12 August 2014 |
01.04.2015 A.Y. 2016-17 |
5 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities is exempt
|
|
22 |
Finland 324 ITR 1 |
01.04.2011 A.Y. 2012-13 |
10 @ |
10 @ |
10 @ |
10 @ |
|
|
23 |
French Republic 209 ITR 130 244 ITR 134 |
01.04.1995 A.Y. 1996-97 |
10 @ |
10 @ |
10 @ |
10 @ |
10% tax on dividend, interest, royalties and technical
services fees w.e.f. 1-4-1997. Modification reflects the position in
Protocol. |
|
24 |
Georgia 341 ITR 1 |
01.04.2012 A.Y 2013-14 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest will be exempt from tax if it is derived and
beneficially owned by (a) In case of India, (i) the Government, a
political sub-division or a local authority (ii) the Reserve Bank of
India, the Export Import Bank of India, the National Housing Bank. (b)
In case of Georgia, (i) the Government or local authority (ii) The
National Bank of Georgia (c) any other institution government agencies,
political administrative sub-divisions as agreed from time to time. For LOB Clause – Refer Note 5 |
|
25 |
Germany (Federal Republic of Germany) 223 ITR 130 |
01.04.1997 A.Y. 1998-99 |
10 @ |
10 @ |
10 @ |
10 @ |
Treaty has some of the lowest withholding rates. It also
effectively lowers from 29.10.1996, withholding rates of India’s
Treaties with other OECD countries such as France, Netherlands, Norway,
Spain, etc. |
|
26 |
Greece 64 ITR 86 |
01.04.1963 A.Y. 1964-65 |
* |
* |
* |
No separate provision |
* Dividend, interest and royalty income is chargeable as per domestic law in source country only. |
|
27 |
Hungary 274 ITR 74 |
01.04.2006 A.Y. 2007-08 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities is exempt
|
|
28 |
Iceland 298 ITR 2 |
01.04.2008 A.Y 2009-10 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities is exempt
|
|
29 |
Indonesia 171 ITR 27 |
01.04.1988 A.Y. 1989-90 |
10 @ 15 @ |
10 @ |
15 @ |
No separate provision |
10% tax on dividends if at least 25% of the capital is owned by Company; in other cases 15%. |
|
30 |
Israel 222 ITR 10 |
1.6.96/1.4.94 |
10 @ |
10 @ |
10 @ |
10 @ |
For TDS on dividend, interest, royalties and technical service
fees effective date is 1.6.1996, for taxes on Income and Capital
effective date is 1.4.1994. |
|
31 |
Ireland 254 ITR 245 255 ITR 95 |
01.04.2002 A.Y. 2003-04 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
32 |
Italy 220 ITR 3 |
01.04.1996 A.Y. 1997-98 |
15 @ 25 @ |
15 + |
20 @ |
20 @ |
15% tax on dividends if at least 10% of the capital is owned
by Company; in other cases 25%.Protocol amending the DTAA with Italy has
been signed on 13th December, 2005 and awaiting notification, pursuant
to which the tax rates would change to 10% for Dividends, Interest,
Royalties and Fees for Technical Services. Concepts of Service PE and
conditions to treat Insurance PEs to be introduced. |
|
33 |
Japan 182 ITR 380 245 ITR 15 284 ITR 64 345 ITR 91 |
01.04.1990 A.Y. 1991-92 |
10 @ |
10 @ |
10 @ |
10 @ |
10% rate is applicable with effect from 1 April 2007 vide Notification No. 186/2006 dated 19 July 2006. Interest derived by following entities is exempt:
|
|
34 |
Jordan 241 ITR 69 |
01.04.2000 A.Y. 2001-02 |
10 @ |
10 @ |
20 @ |
20 @ |
— |
|
35 |
Kazakhstan 228 ITR 162 |
01.04.1998 A.Y. 1999-2000 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
36 |
Kenya 157 ITR 8 |
01.04.1984 A.Y. 1985-86 |
15 @ |
15 + |
20 + |
No separate provision |
There is a specific clause for management and professional fees which is taxable income @ 17.5 %. |
|
37 |
Korea (South) 165 ITR 191 PIB press release dated 6 May 2015 |
01.04.1986 A.Y. 1987-88 |
15 @ 20 @ |
15 @ 10 @ |
15 @ |
15 @ |
15% tax on dividend if at least 20% of the capital is owned by
co.; in other cases 20%. For interest at 10% if received by bank or
government, other cases it is 15%. The Union Cabinet has given its approval for revising DTAA between India and Korea. The revised DTAA is awaited |
|
38 |
Kuwait 295 ITR 44 |
01.04.2008 A.Y. 2009-10 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities is exempt
|
|
39 |
Kyrgyz Republic 248 ITR 218 |
01.04.2002 A.Y. 2003-04 |
10 @ |
10 @ |
15 @ |
15 @ |
Interest paid to government or government F.I. or Central Bank exempt. See protocol for other articles. |
|
40 |
Latvia 363 ITR 177 |
01.04.2014 A.Y. 2015-16 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest arising and beneficially owned by the following shall
be exempt (a) The Government, a political sub-division or a local
authority; (b)(i) in case of India, the RBI, EXIM Bank, the National
Housing Bank (ii) In case of Latvia, the Bank of Latvia, the Mortgage
and Land Bank of Lativa and the Latvian Guarantee Agency or (c) any
other similar institution, as may be agreed upon from time to time
between the competent authorities of the Contracting States through
exchange of letters (d) a resident of India, if the interest is paid in
respect of a loan made, guaranteed or insured or a credit extended,
guaranteed or insured by the Government, a political sub-division or a
local authority of India or by any of the bodies mentioned in (b)(i) or
(c) or (e) a resident of Latvia, if the interest is paid in respect of a
loan made, guaranteed or insured or a credit extended, guaranteed or
insured by the Government or a local authority of Latvia or by any of
the bodies mentioned in (b) (ii) or (c). For LOB Clause – Refer Note 6 |
|
41 |
Libya 137 ITR 27 |
01.04.1983 A.Y. 1984-85 |
* |
* |
* |
No separate provision |
* Dividend, interest, royalty will be taxable as per domestic law of source country. |
|
42 |
Lithuania 346 ITR 116 |
01.04.2013 A.Y 2014-15 |
*5 @ 15 @ |
**10 @ |
10 @ |
10 @ |
*5% tax on dividends if at least 10% of the capital is owned by Company; in other cases 15%. ** Interest derived and beneficially owned by following entities is exempt
|
|
43 |
Luxembourg 318 ITR 9 |
01.4.2010 A.Y. 2011-12 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities exempt:
|
|
44 |
Malaysia 353 ITR 53 |
01.04.2013 A.Y. 2014-15 |
5 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities is exempt (a) In case of Malaysia, Government of Malaysia; Government of the States; Bank Negara Malaysia, the local authorities, the statutory bodies wholly owned by the Government; Export-Import Bank of Malaysia Berhad (EXIM Bank); Bank Pembangunan Malaysia Berhad (Development Bank of Malaysia Berhad); Bank Perusahaan Kecil & Sederhana Malaysia Berhad (Small & Medium Enterprise Bank of Malaysia Berhad); and Malaysia Industrial Development Finance Berhad (b) In case of India, the Government, political sub-divisions, statutory bodies wholly owned by the Government; local authorities, EXIM Bank, RBI, IFCI, IDBI, NHB, SIDBI and (c) Any other institutions as may be agreed from time to time between the competent authorities of the Contracting states. For LOB Clause – Refer Note 5 |
|
45 |
Malta Notification No.34/2014/F.No.504/06/2003-FTD-I dated 5 August 2014 |
01.04.2015 A.Y 2016-17 |
10 @* |
10 @ |
10 @ |
10 @ |
*As per para 1 of the protocol, under the full imputation
system adopted by Malta, there is no withholding tax on dividends in
addition to the tax chargeable in respect of the profits or income of
the company out of which the dividends are paid. |
|
Interest derived and beneficially owned by following entities
is exempt (a) the Government, a political sub-division or a local
authority of the other Contracting state; or (b) (i) in case of India,
the RBI, the Export-Import Bank of India and the National Housing Bank
or (ii) in case of Malta, the Central Bank of Malta. (c) any other
institution as may be agreed upon from time to time between the
competent authorities of the Contracting states through exchange of
letters. For Limitation Of Benefits (‘LOB’) Clause – Refer Note 5. |
|||||||
|
46 |
Mauritius 146 ITR 214 243 ITR 25 |
01.04.1982 A.Y. 1983-84 |
5 @ 15 @ |
* @ |
15 + |
No separate provision |
5% tax on dividends if at least 10% of the capital is owned by
Company, in other cases 15%.* Interest exempt if beneficially owned by
Government or bank carrying bona fide banking business, in other cases
rate as per domestic laws. |
|
47 |
Mexico 329 ITR 7 |
01.04.2011 A.Y. 2012-13 |
10 @ |
10 @ |
10 @ |
10 @ |
|
|
48 |
Mongolia 222 ITR 44 |
01.04.1994 A.Y. 1995-96 |
15 @ |
15 @ |
15 @ |
15 @ |
— |
|
49 |
Montenegro 308 ITR 42 |
01.04.2009 A.Y. 2010-11 |
5 @ 15 @ |
10 @ |
10 @ |
10 @ |
5% tax on dividends if at least 25% of the capital is owned by Company; in other cases 15%. Interest derived and beneficially owned by following entities is exempt
|
|
50 |
Morocco 243 ITR 26 |
01.04.2001 A.Y. 2002-03 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest exempt if beneficially owned by Government or Government owned banks |
|
51 |
Mozambique 335 ITR 65 |
01.04.2012 A.Y 2013-14 |
7.5 @ |
10 @ |
10 @ |
No separate provision * |
Interest derived and beneficially owned by following entities will be exempt
For LOB Clause – Refer Note 6 |
|
52 |
Myanmar 314 ITR 6 |
01.04.2010 A.Y. 2011-12 |
5 @ |
10 @ |
10 @ |
No separate provision |
Interest derived and beneficially owned by following entities is exempt
|
|
53 |
Namibia 236 ITR 230 |
01.04.2000 A.Y. 2001-02 |
10 @ |
10 @ |
10 @ |
10 @ |
–Unique LOB clause - Each country gets right to tax income exempted from tax in other country |
|
54 |
Nepal 345 ITR 128 |
01.04.2013 A.Y 2014-15 |
*5 @ 10 @ |
**10 @ |
15 @ |
No separate provision |
*5% tax on dividends if at least 10% of the capital is owned by Company; in other cases 10%. **Interest derived and beneficially owned by following entities is exempt
|
|
55 |
Netherlands 177 ITR 72 239 ITR 56 350 ITR 39 |
01.04.1997 [01.04.87 for Air transport] A.Y. 1998-99 |
10 @ |
10 @ |
10 @ |
10 @ |
Reduced rates for dividend and interest from 1.4.1997.
Interest earned by the Government, certain institutions like the Central
Banks, local authorities or institutions the capital of which is held
by the Government of the respective countries etc. is exempt. Protocol replaces Article 26 - Exchange of Information to make it more comprehensive. |
|
56 |
New Zealand 166 ITR 90 225 ITR 15 242 ITR 147 |
01.04.1987 A.Y. 1988-89 |
15 @ |
10 @ |
10 @ |
10 @ |
Protocol restricting treaty benefits to Indian or New Zealand
residents. Reduced rates come into force from 1.4.2000 and apply to A.Y.
2001-02. |
|
57 |
Norway 345 ITR 157 |
01.04.2012 A.Y 2013-14 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by the following
entities is taxable only in the contracting state of which the recipient
is resident:
|
|
58 |
Oman (Sultanate of) 228 ITR 21 |
01.04.1998 A.Y. 1999-00 |
10 @ 12.5 @ |
10 @ |
15 @ |
15 @ |
10% tax on dividends if beneficial owner is company owning at least 10% of capital in payer company. 12.5% in all other cases. |
|
59 |
Philippines 219 ITR 60 |
01.04.1995 A.Y. 1996-97 |
15 @ 20 @ |
10 @ 15 @ |
15 @ |
No separate provision |
15% tax on dividends if at least 10% of the capital is owned
by Company; in other cases 20%. Interest at 10% in hands of financial
institutions, Insurance Company and also on public issues of bond,
debentures, etc., and at 15% in all other cases. |
|
60 |
Poland 182 ITR 147 Modified via Protocol Notification No. 47/2014 F.No. 501/08/1979-FTD-I dated 24 September 2014 |
01.04.1990 A.Y. 1991-92 01.04.2015 A.Y 2016-17 |
10 @ |
10 @ |
15 @ |
15 @ |
Interest derived and beneficially owned by following entities
is exempt (i) the Government, a political sub-division or a local
authority of the other Contracting state or (ii) the Central Bank of the
other Contracting state. Interest derived in connection with a loan or credit extended or endorsed and beneficially owned by following entities is exempt (i) in the case of Poland, Bank Gospodarstwa Krajowego (BGK), to the extent such interest is attributable to financing of exports and imports only (ii) in the case of India, the Export-Import Bank of India (Exim Bank) to the extent such interest is attributable to financing of exports and imports only (iii) any institution of a Contracting State in charge of public financing of external trade (iv) any other person provided that the loan or credit is approved by the Government of the first-mentioned Contracting State. For LOB clause – Refer Note 5. |
|
61 |
Portuguese Republic 244 ITR 57 |
1.4.2001 A.Y. 2002-03 |
10 @ 15 @ |
10 @ |
10 @ |
10 @ |
10% tax on dividend if at least 25% of the capital is owned by
a Company for an uninterrupted period of 2 years prior to payment of
the dividend, otherwise 15% limitation of tax on interest to be settled
under Mutual Agreement Procedure by competent Authorities. See protocol
to the Treaty for details on other Articles. |
|
62 |
Qatar 242 ITR 165 |
01.04.2001 A.Y. 2002-03 |
5 @ 10 @ |
10 @ |
10 @ |
10 @ |
5% tax on dividend if beneficial owner is company owning, at least 10% of capital in payer company. 10% in all other cases. |
|
63 |
Romania Notification No 13/2014 F.No.501/10/1995-FTD-I |
01.04.14 A.Y 2015-16 |
10 @ |
10 @ |
10 @ |
10@ |
Interest derived and beneficially owned by following entities
is exempt (a) the Government, an administrative – territorial unit
political sub-division or a local authority of the other Contracting
state; or (b) (i) in case of Romania, the National Bank of Romania,
Export-Import Bank of Romania, and (ii) in case of India, the Reserve
Bank of India,Export-Import Bank of India, the National Housing Bank, or
(c) any other institutions as may be agreed upon from time to time
between the competent authorities of the Contracting states through
exchange of letters. For LOB Clause – Refer Note 6 |
|
64 |
Russian Federation 233 ITR 90 |
01.04.99 A.Y. 2000-01 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
65 |
Saudi Arabia 286 ITR 87 |
01.04.2007 AY 2008-09 |
5 @ |
10 @ |
10 @ |
No Separate provision |
Interest derived and beneficially owned by following entities
is exempt (a) the Government, a political sub-division or a local
authority; or (b) RBI, Export-Import Bank of India, the National Housing
Bank, the Saudi Arabian Monetary Agency (c) any other financial
institutions wholly owned directly and controlled by the Government.
”Resident” includes (in case of Saudi Arabia), an Indian national who is
present in Saudi Arabia for a period of at least 183 days in a fiscal
year. “Zakat” is treated as a tax on income. DTA to be reviewed after 5
years for inclusion of FTS clause |
|
66 |
Serbia 308 ITR 18 |
01.04.2009 A.Y. 2010-11 |
5 @ 15 @ |
10 @ |
10 @ |
10 @ |
5% tax on dividends if at least 25% of the capital is owned by Company; in other cases 15%. Interest derived and beneficially owned by following entities is exempt
|
|
67 |
Singapore 209 ITR 1 Modified via Protocol signed pursuant to CECA 276 ITR 142 Further Modified via Protocol 337 ITR 93 |
01.04.1994 A.Y. 1995-96 |
10 @ 15 @ |
10 @ 15 @ |
10 @ |
10 @ |
10% tax on dividend if at least 25% of the capital is owned by
co. In other cases 15%. Interest at 10% if recipient is bank, insurance
co. or similar financial institution. In other cases 15%. Article on Capital Gains similar to India - Mauritius DTAA subject to satisfaction of additional conditions in the LOB clause via Protocol dated 29th June 2005 (effective A. Y. 2006-2007). Protocol replaces Article 28- Exchange of Information to make it more comprehensive. |
|
68 |
Slovak Republic Notification No. 25/2015 F.No. 501/12/1995-FTD-I dated 23 March 2015 |
01.04.2000 A.Y. 2001-02 |
10@ |
10@ |
10@ |
10@ |
The Agreement signed between India and Czechoslovak Socialist
Republic for the avoidance of double taxation and the prevention of
fiscal evasion with respect to taxes on income continues to be
applicable in respect of the Slovak Republic, being one of the
independent States to have succeeded the Czechoslovak Socialist
Republic. |
|
69 |
Slovenia 275 ITR 144 |
01.04.2006 A.Y. 2007-08 |
5 @ 15 @ |
10 @ |
10 @ |
10 @ |
5% tax on dividend if beneficial owner is company owning at least 10% of capital in payer company, 15% in all other cases. |
|
70 |
South Africa 231 ITR 23 Modified via protocol notification No. 10/2015-FT & TR-II dated 2 February 2015 |
01.04.1998 A.Y. 1999-2000 |
10 @ |
10 @ |
10 @ |
10 @ |
Protocol effective from 26 November 2014 replaces Article 28- Exchange of Information to make it more comprehensive. |
|
71 |
Spain 214 ITR 197 |
01.04.1996 A.Y. 1997-98 |
15 @ |
15 @ |
10 @ |
10 @ |
Royalty payment for use of or right to use equipment was
taxable at 10%, in other cases taxable rate was 20%. However, Royalties
and Fees for Technical Services taxable at 10% as per lower rate
specified in Indo-German DTAA w.e.f. 26-10-1996. |
|
72 |
Sri Lanka 363 ITR 39 |
01.04.2014 A.Y. 2015-16 |
7.5 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by the following shall
be exempt a) the Government, a political sub-division or a local
authority; (b)(i) in the case of India, the RBI, Exim Bank, the National
Housing Bank and (ii) in case of Srilanka, the Central Bank of Srilanka
or (c) any other institution the capital of which is wholly owned by
the Government of that |
|
state, as may be agreed upon from time to time between the
competent authorities of the Contracting States through exchange of
letters. For LOB Clause – Refer Note 6. |
|||||||
|
73 |
Sudan 271 ITR 3 |
01.04.2005 A. Y. 2006-07 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest or gains derived and beneficially owned by following
entities is exempt (a) the Government, a political sub-division or a
local authority; (b) in case of India, the RBI, IFCI, IDBI, NHB, SIBBI
and ICICI; (c) in case of Sudan, the Bank of Sudan and the Sudanese
Development Corporation; or (d) any other institution as may be agreed
upon from time to time between the competent authorities of the
Contracting States through exchange of letters |
|
74 |
Sweden 229 ITR 11 |
01.04.1998 A.Y. 1999-2000 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
75 |
Swiss Confederation 214 ITR 223 248 ITR 209 |
01.04.1995 A.Y. 1996-97 |
10 @ |
10 @ |
10 @ |
10 @ |
Extensive Modifications to many articles including P.E. come into effect from 1.4.2001. |
|
76 |
Syria 312 ITR 9 |
01.04.2009 A.Y. 2010-2011 |
5 @ 10 @ |
10 @ |
10 @ |
No separate provision |
5% tax on dividend at least 10% of capital is held by company, 10% in all other cases Interest derived and beneficially owned by following entities is exempt
|
|
77 |
Tajikistan 315 ITR 1 |
01.04.2010 A.Y. 2011-12 |
5 @ 10 + |
10 @ |
10 @ |
No separate provision |
Dividend is taxable at 5% where the beneficial owner is a company holding at least 25% of the share capital. Interest derived and beneficially owned by following entities is exempt
|
|
78 |
Tanzania 343 ITR 5 |
01.04.2012 A.Y. 2013-14 |
*5 @ 10 @ |
**10 @ |
10 @ |
No separate provision |
*5% tax on dividends if at least 25% of the capital is owned by Company; in other cases 10% 10% Interest derived and beneficially owned by following entities is exempt:
|
|
79 |
Thailand 161 ITR 82 |
01.01.1987 A.Y. 1988-89 |
15 @ 20 @ |
10 + 25 + |
15 + |
No separate provision |
Dividend taxable at 15% if payer is industrial company and
payee company is holding at least 10% of voting shares in it. Taxable at
20% if payee is industrial company or recipient company is beneficial
owner holding at least 25% of voting shares. In other cases as per
domestic law. Interest taxable at 10% if recipient is financial
institution including insurance company, otherwise at 25%. |
|
80 |
Trinidad and Tobago 240 ITR 184 |
01.04.2000 A.Y. 2001-02 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
81 |
Turkey 224 ITR 145 |
01.04.1994 (notified on 03.02.97) A.Y. 1995-96 |
15 @ |
10 @ |
15 @ |
15 @ |
Interest is taxable at 10% if recipient is a bank or a financial institution, in other cases 15%. |
|
82 |
Turkmenistan 228 ITR 44 |
01.04.1998 A.Y. 1999-2000 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
83 |
Uganda 270 ITR 83 |
01.04.2005 A. Y. 2006-07 |
10 @ |
10 @ |
10 @ |
10 @ |
Interest derived and beneficially owned by following entities
is exempt (a) Government, political sub-division or a local authority of
the other Contracting State; or (b) the Central Bank or the other
Contracting State; or any other bank, or Government financial
institutions/agencies that may be mutually agreed upon between the two
Contracting States. |
|
84 |
Ukraine 253 ITR 54 |
01.04.2002 A.Y. 2003-04 |
10 @ 15 @ |
10 @ |
10 @ |
10 @ |
Dividend taxable @ 10% if at least 25% of the capital beneficially owned, otherwise @ 15% |
|
85 |
United Arab Emirates 205 ITR 49 Notification no. 282 dated 28.11.07 295 ITR 40 352 ITR 43 |
01.04.1994 A.Y. 1995-96 |
10 @ |
5 @ 12.5 @ |
10 @ |
No separate provision |
Tax on interest at 5% in cases of banks, etc. and at 12.5% in
all other cases. Interest exempt in case of Government, political
sub-division or a local authority and Central Banks of the two states Protocol replaces Article 28- Exchange of Information to make it more comprehensive. For LOB Clause – Refer Note 6 |
|
86 |
United Arab Republic (Egypt) 74 ITR 11 |
01.01.1970 A.Y. 1971-72 (01.01.1961 operation of aircraft) |
* |
* |
Taxable only in source country |
No separate provision |
* For rate of tax and basis of taxation refer to the DTAA provisions. |
|
87 |
United Kingdom 206 ITR 235 Modified via Protocol Notification No. 10/2014 F.No. 505/3/1986-FTD-I dated 10 February 2014 |
01.04.1994 A.Y. 1995-96 |
15 @* 10 @ |
15 @** 10 @ |
[See Note 2] |
[See Note 2] |
* Dividend taxable @15% where those dividends are paid out of
income 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, in all other cases 10% **Interest taxable at 10% if beneficial owner is bank which is resident, in other cases at 15%. Interest paid to following entities is exempt:
For LOB Clause – Refer Note 6 |
|
88 |
United States of America 187 ITR 102 |
01.04.1991 A.Y. 1992-93 |
15 @ 25 @ |
10 @ 15 @ |
[See Note 2] |
[See Note 2] |
15% tax on dividends if at least 10% of the capital is owned
by Company, in other cases 25%. Interest taxable at 10% if recipient is
bona fide bank or financial institution, in other cases 15%. Technical
Services termed as included services. Treaty has LOB clause and P.E. Tax
Articles. Protocol is very important. For LOB Clause – Refer Note 6 |
|
89 |
Uruguay CBDT Circular No. F.No.500/138/2002-FTD-II |
01.04.2014 A.Y. 2015-16 |
5 @ |
10 @ |
10 @ |
10 @ |
Interest arising in a Contracting State shall be exempt from
tax in that State, provided that it is derived and beneficially owned
by:
|
|
90 |
Uzbekistan 223 ITR 60 349 ITR 171 |
01.04.1993 A.Y. 1994-95 01.04.2013 A.Y 2014-15 |
15 @ 10 @ |
15 @ 10 @ |
15 @ 10 @ |
15 @ 10 @ |
* Interest received from transaction approved by source
country’s Government will be exempt. In other cases normal provision of
domestic tax law will apply. Protocol replaces Article 28- Exchange of Information to make it more comprehensive. For LOB Clause – Refer Note 6. |
|
91 |
Vietnam (Socialist Republic of Vietnam) 214 ITR 137 |
01.04.1996 A.Y. 1997-98 |
10 @ |
10 @ |
10 @ |
10 @ |
— |
|
92 |
Zambia 146 ITR 233 |
A.Y. 1979-80 |
5 + 15 + |
10 + |
10 + |
10+ |
Dividend taxable at 5% if the recipient is a company which
holds at least 25% of the shares during at least 6 months before the
date of payment and at 15% in all other cases. Article 14 is titled
‘Management and Consultancy Fees’ |
- In most cases the aforesaid rates of tax are on gross income but in some cases, tax is levied on the net income and, hence, each article of the respective agreement/s must be carefully analyzed and applied.
- In the Country of Source, Royalties and Fees for Technical Services are taxed at following rates :
- 10% for Equipment Rental and for Services ancillary or subsidiary thereto.
- for other cases.
- during 1st 5 years of Agreement 15% if Government or Specified Organization is payer, 20% for other payers
- subsequent years, 15% in all cases Income of Government/Government Organizations exempt from Taxation in Country of Source.
- Pages referred to in citation are statute page Nos.
@ - Beneficial Ownership required
+ - Beneficial Ownership may not be required - The rate of tax under the Income-tax Act, 1961 (‘the
Act’) on royalty or fees for technical services receivable by a foreign
company is as below:
For agreements made on or after 1 April 1976 –10% (*With effect from 1 April 2016 i.e. A.Y. 2016-17)
As per Section 90(2) of the Act, this rate may be adopted if it is lower than rate under DTAA. - Separate Limitation of Benefits Article to combat treaty shopping. Anti-avoidance provisions under domestic law will override treaty
- Separate Limitation of Benefits Article to combat treaty shopping.
- List of important Circulars on DTAA and Income of Non Residents in India
|
Circular / Notification No. & Date |
Reference |
Matter |
|---|---|---|
|
No. 5 DT. 28-09-2004: |
270 ITR (St.) 0031 |
Taxation of business process outsourcing units of
Non-Residents in India. (Revised, withdrawing Circular No. 1 dated
02-01-2004 [265 ITR (St.) 0023]) |
|
No. 1 of 2004 DT. 02-01-2004: |
265 ITR (St.) 0023 |
Taxation of business process outsourcing units of Non-Residents in India. |
|
No. 1 of 2003 DT. 10-02-2003: |
260 ITR (St.) 0245 |
Residential status under Indo Mauritian Tax Treaty. |
|
No. 10 DT. 09-10-2002 |
258 ITR (St.) 9 |
Submission of No Objection Certificate in case of remittance to a non-resident |
|
No 787 DT. 10-02-2000 |
243 ITR (St.) 1 |
Taxation of income of artists, entertainers, sportsmen etc. from international/local events. |
|
No. 742 DT. 02-05-1996: No. 765 DT. 15-04-1998: No. 6/2001, dated 5-3-2001 |
219 ITR (St.) 0049 231 ITR (St.) 0010 248 ITR (St.) 247 |
Taxation of foreign telecasting companies. |
|
No. 740 DT. 17-04-1996: |
219 ITR (St.) 0008 |
Taxability of remittance of interest by Branch of a foreign bank to its head office. |
|
No. 734 DT. 24-01-1996: |
217 ITR (St.) 0074 |
Rates of TDS under DTAA between India & U.A.E. |
|
No. 728 DT. 30-10-1995: |
216 ITR (St.) 0141A |
Clarification regarding rate of TDS u/s. 195 for remittance,
clarified that such rates shall be as provided in relevant Finance Act
or in DTAA whichever is more beneficial to the assessee. |
|
No. 588 DT. 02-01-1991: |
187 ITR (St.) 0063 |
Taxability of import of system software from Non Residents. |
|
No. 333 DT. 02-04-1982: |
137 ITR (St.) 0001B |
A conflict in application of DTAA and provisions of Income-tax Act, 1961, clarified that beneficial provision shall apply. |
|
No. 108 DT. 20-03-1973: |
|
In relation to exchange of information between the countries for preventing evasion or avoidance of taxes and recovery thereof. |
|
Nos. 90 and 91/ 2008 DT 28-08-2008 |
304 ITR 63 |
Where treaty provides that any income of an Indian Resident
“may be taxed” in the other country, such income shall be included in
the total Income of such resident and relief shall be available as per
DTAA. |
|
CBDT Instruction No. 3 /2004 dated 19-03-2004 |
Suspension of collection of taxes during operation of Mutual Agreement Procedure in respect of India-UK DTAA |
|
|
Circular No.7/2009 [F.No. 500/135/2007-FTD-I] dated 22 October 2009 |
318 ITR 1 |
Circular No 23 dated 23rd July 1969 and Circular No 163 dated
29th May, 1975 (both relating to taxability and accrual of Income of
Non-resident in India) are withdrawn. Further, Circular No. 786 dated
7th February 2000 (relating to clarification of taxability of export
commission in the hands of non-resident in India) is also withdrawn |
|
Circular No.7 dated 23 October 2007 amended on 27 September 2011 |
338 ITR 1 |
The CBDT has laid down the procedure for refund of tax
deducted at source under Section 195 of the Income-tax Act, 1961 to the
person deducting tax at source from the payment to a non-resident.
Refund will now be available to residents who have deducted tax at a
higher rate, relying on a Tax Treaty, while a lower rate of tax
deduction has been prescribed under domestic law. |
|
Notification No.57/2013/F.No.142/16/2013-TPL |
356 ITR 21 |
The CBDT has amended Rule 21AB of Income Tax Rules, 1962. As
per the amendment, subject to provisions of Section 90 and 90A of the
Act, if the TRC doesn’t contain specified details viz. status of the
taxpayer, country of registration, PAN, tax identification number etc.;
non-resident taxpayer to furnish the same through Form 10F. |
|
Notification No. 93/2009 dated 9 December 2009 |
320 ITR 14 |
“The territory in which the taxation law administered by the
Ministry of Finance in Taipei is applied” has been notified as
‘Specified Territory’ and “India-Taipei Association in Taipei” and
“Taipei Economic and Cultural Centre in New Delhi” have been notified as
‘Specified Association’ under Section 90A of the Income-tax Act, 1961. |
|
Notification No. 22/2010/F.No. 142/5/2010-SO(TPL) dated 8 April 2010 |
323 ITR 52 |
The following areas outside India have been notified as ‘Specified territory’ under Section 90 of the Income-tax Act, 1961:
|
|
Notification No. 25/2010 [F.No. 500/124/97-FTD-II], dated 20 April 2010 |
323 ITR 52 |
Hong Kong Special Administrative Region of the People’s
Republic of China has been notified as ‘Specified territory’ under
Section 90 of the Income-tax Act, 1961 |
|
Notification No. 54/2012 [F.No. 503/14/2012-FTD-I(PT), dated 17 December 2012 |
350 ITR 4 |
Sint Maarten, a part of Kingdom of Netherlands, has been
notified as ‘Specified territory’ under Section 90 of the Income-tax
Act, 1961 |
|
Notification No F.No.504/05/2003-FTD-I |
359 ITR 8 |
Cyprus has been notified as ‘notified jurisdictional area’ under Section 94A of the Income-tax Act, 1961 |
|
Notification No.03/2011-FTD-II [F.No. 500/96/97-FTD_II] dated 10 January 2011 |
330 ITR 6 |
Agreement among Governments of SAARC Member States for
avoidance of double taxation and mutual administrative matters is
effective from 1 April 2011 |
|
Notification No.05/2011/F.No.503/2/2009-FTD-I |
330 ITR 83 |
Tax Information Exchange Agreement between India and Bermuda signed on 7 October 2010 |
|
Notification No.25/2011/F.No.503/6/2009-FTD-I |
334 ITR 296 |
Tax Information Exchange Agreement between India and Bahamas signed on 11 February 2011 |
|
Notification No.26/2011/F.No.503/01/2008-FTD-I |
334 ITR 313 |
Tax Information Exchange Agreement between India and Isle of Man was signed on 4 February 2011 |
|
Notification No.54/2011/F.No.503/10/2009-FTD-I |
338 ITR 25 332 ITR 4 |
Tax Information Exchange Agreement between India and British
Virgin Islands signed on 9 February 2011 Press Note / Release No.
402/92/2006-MC (43 of 2011) |
|
Notification No.61/2011/F.No.503/03/2009-FTD-I |
340 ITR 1 |
Tax Information Exchange Agreement between India and Cayman Islands was signed on 21 March 2011 |
|
Notification No.26/2012/F.No.503/6/2008-FTD-I |
346 ITR 1 |
Tax Information Exchange Agreement between India and Jersey was signed on 03 November 2011 |
|
Notification No.30/2012/F.No.503/01/2009-FTD-I |
346 ITR 169 |
Tax Information Exchange Agreement between India and Guernsey was signed on 20 December 2011 |
|
Notification No.32/2012-FT-TR-II/F.No.503/02/2010-FT&TR-II |
348 ITR 132 |
Tax Information Exchange Agreement between India and Liberia was signed on 03 October 2011 |
|
Notification No.43/2012-FT&TR-II/F.No.503/04/2009-FT&TR-II |
349 ITR 3 |
Tax Information Exchange Agreement between India and Macao
Special Administrative Region of the People’s Republic of China was
signed on 03 January 2012 |
|
Notification No. 22/2013/504/3/2010 FTD-II |
352 ITR 46 |
Tax Information Exchange Agreement between India and Argentina was signed on 21 November 2011. |
|
Notification No. 28/2013[F.No.503/11/2009-FTD-I |
352 ITR 58 |
Tax Information Exchange Agreement between India and Gibraltar was signed on 01 February 2013. |
|
Notification No. 43/2013/F. No. 503/4/2009 – FTD-I. |
355 ITR 197 |
Tax Information Exchange Agreement between India and Monaco was signed on 31 July 2012. |
|
Notification No. 3/2014/F.No. 503/4/2012-FTD-I |
360 ITR 44 |
Tax Information Exchange Agreement between India and Belize was signed on 18 September 2013. |
|
Notification No. 44/2013/F.No.501/03/1994-FT&TR-II dated 19 June 2013 |
Tax Information Exchange Agreement between India and Bahrain was signed on 31 May 2012. |
|
|
Notification No. 30/2014/F.No. 503/4/2009-FTD-I dated 6 June 2014 |
Tax Information Exchange Agreement between India and the Principality of Liechtenstein was signed on 28 March 2013. |
|
|
Notification No. 48/2011/F.No. 500/02/2001/FTD-II |
337 ITR 96 |
Agreement between India – Taipei Association In Taipei and
Taipei Economic and Cultural Center in New Delhi for Avoidance of Double
Taxation and the prevention of Fiscal Evasion with respect to Taxes on
Income shall be effective from 1 April 2012. The Agreement notifies the following rates for taxes on income:-
|
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