Withholding tax applies to payments made by a person in India to a non-resident or foreign company, and tax must be deducted at the rates prescribed under the Income-tax Act or the applicable Double Taxation Avoidance Agreement (DTAA), whichever is more beneficial to the non-resident. The applicable withholding tax rates differ across countries and categories of income, including dividends, interest, royalties, and fees for technical services (FTS). Several DTAAs prescribe concessional rates subject to conditions such as minimum shareholding, beneficial ownership, or loans granted by banks or financial institutions. Some treaties provide different rates for specific types of royalties or interest, while others do not contain separate provisions for FTS, in which case the relevant treaty provisions or the Income-tax Act apply. Certain treaties also prescribe special conditions for dividend taxation based on the percentage of shareholding held by the recipient company. The compilation reflects the withholding tax rates under India’s DTAAs with various countries and incorporates the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2026, while advising readers to verify the applicable statutory provisions, treaty conditions, and notifications before determining the appropriate withholding tax rate.
Withholding tax rates
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 | Interest | Royalty | Fee for Technical Services |
| Albania | 10% | 10% | 10% | 10% |
| Armenia | 10% | 10% | 10% | 10% |
| Australia | 15% | 15% | 10%/15% | No separate provision |
| Austria | 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 |
10% | 10% | No separate provision |
| Belarus | a) 10%, if paid to a company holding 25% shares;
b) 15%, in all other cases |
10% | 15% | 15% |
| Belgium | 15% | 15% (10% if loan is granted by a bank) | 10% | 10% |
| Bhutan | 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 |
10% | 10% | 10% |
| Brazil | 10%/15% | 10%/15% | a) 15% for use of trademark;
b) 10% for others |
10% |
| Bulgaria | 15% | 15% | 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% | 10%-20% | 10%-20% |
| China | 10% | 10% | 10% | 10% |
| Columbia | 5% | 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 |
10% | 10% | 10% |
| Cyprus | 10% | 10% | 10% | 10% |
| Czech Republic | 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 |
a) 10% if loan is granted by bank;
b) 15% for others |
20% | 20% |
| Estonia | 10% | 10% | 10% | 10% |
| Ethiopia | 7.5% | 10% | 10% | 10% |
| Finland | 10% | 10% | 10% | 10% |
| Fiji | 5% | 10% | 10% | 10% |
| France | 10% | 10% | 10% | 10% |
| Georgia | 10% | 10% | 10% | 10% |
| Germany | 10% | 10% | 10% | 10% |
| Greece | 20% | 20% | 10% | No separate provision |
| Hongkong | 5% | 10% | 10% | 10% |
| Hungary | 10% | 10% | 10% | 10% |
| Indonesia | 10% | 10% | 10% | 10% |
| Iceland | 10% | 10% | 10% | 10% |
| Iran | 10% | 10% | 10% | 10% |
| Ireland | 10% | 10% | 10% | 10% |
| Israel | 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 |
15% | 20% | 20% |
| Japan | 10% | 10% | 10% | 10% |
| Jordan | 10% | 10% | 20% | 20% |
| Kazakhstan | 10% | 10% | 10% | 10% |
| Kenya | 10% | 10% | 10% | 10% |
| Korea | 15% | 10% | 10% | 10% |
| Kuwait | 10% | 10% | 10% | 10% |
| Kyrgyz Republic | 10% | 10% | 15% | 15% |
| Libyan Arab Jamahiriya | 10% | 20% | 20% | No separate provision |
| Latvia | 10% | 10% | 10% | 10% |
| Lithuania | a) 5%, 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.
b) 15%, in other cases |
10% | 10% | 10% |
| Luxembourg | 10% | 10% | 10% | 10% |
| Malaysia | 5% | 10% | 10% | 10% |
| Malta | 10% | 10% | 10% | 10% |
| Mongolia | 15% | 15% | 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 | (a) 5% if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends;
(b) 15% in other cases |
10% | 10% | 10% |
| Myanmar | 5% | 10% | 10% | No separate provision |
| Morocco | 10% | 10% | 10% | 10% |
| Mozambique | 7.5% | 10% | 10% | No separate provision |
| Macedonia | 10% | 10% | 10% | 10% |
| Namibia | 10% | 10% | 10% | 10% |
| Nepal | (a) 5% if the beneficial owner is a company which owns at least 10 per cent of the shares of the company paying the dividends;
(b) 15% in all other cases. |
10% | 15% | No separate provision |
| Netherlands | 10% | 10% | 10% | 10% |
| New Zealand | 15% | 10% | 10% | 10% |
| Norway | 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 |
10% | 10% | 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 |
a) 10%, if interest is received by a financial institution or insurance company;
b) 15% in other cases |
15% if it is payable in pursuance of any collaboration agreement approved by the Government of India | No separate provision |
| Poland | 15% | 15% | 22.5% | 22.5% |
| Portuguese Republic | 10%/15% | 10% | 10% | 10% |
| Qatar | a) 5% if the beneficial owner is a company which owns at least ten per cent of the shares of the company paying the dividend; and
b) 10% in all other cases. |
10% | 10% | 10% |
| Romania | 10% | 10% | 10% | 10% |
| Russian Federation | 10% | 10% | 10% | 10% |
| Saudi Arabia | 5% | 10% | 10% | No separate provision |
| Serbia | a) 5%, if recipient is company and holds 25% shares;
b) 15%, in any other case |
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 |
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 the beneficial owner is a company which owns at least ten per cent of the shares of the company paying the dividend; and
b) 15% in all other cases. |
10% | 10% | 10% |
| South Africa | 10% | 10% | 10% | 10% |
| Spain | 15% | 15% | 10% | 10% |
| Sri Lanka | 7.5% | 10% | 10% | 10% |
| Sudan | 10% | 10% | 10% | 10% |
| Sweden | 10% | 10% | 10% | 10% |
| Swiss Confederation | 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 |
10% | 10% | No separate provision |
| Taipei | 12.5% | 10% | 10% | 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 |
10% | 10% | No separate provision |
| Tanzania | 10% (5% if shareholder is a company and holds 25% shares) | 10% | 10% | No separate provision |
| Thailand | 10% | 10% | 10% | No separate provision |
| Trinidad and Tobago | 10% | 10% | 10% | 10% |
| Turkey | 15% | a) 10% if loan is granted by a bank, etc.;
b) 15% in other cases |
15% | 15% |
| Turkmenistan | 10% | 10% | 10% | 10% |
| Uganda | 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 |
10% | 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 Arab Republic (EGPT) | 10%/20% [Note 1] | 20%[Note 1] | 20%[Note 1] | No separate provision |
| United Mexican States | 10% | 10% | 10% | 10% |
| United Kingdom | 15%/10%
(Note 4) |
a) 10%, if interest is paid to a bank;
b) 15%, in other cases |
10%/15% | 10%/15% |
| 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% | 10%/15% |
| Uruguay | 5% | 10% | 10% | 10% |
| Uzbekistan | 10% | 10% | 10% | 10% |
| Vietnam | 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 |
10% | 10% | 10% |
Note 1. Articles 11, 12 and 13 of the India-UAR (Egypt) treaty don’t provide withholding tax rates in respect of dividend, interest and royalty payments. Thus, the tax shall be withheld as per rates applicable under the Income-tax Act 1961.
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Disclaimer: The contents of this document are for information purposes only. This aims to enable public to have a quick and an easy access to information and do not purport to be legal documents. Viewers are advised to verify the content from Government Acts/Rules/Notifications etc.
“This document contains the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2026.”
[As amended by Finance Act, 2026]
(Republished with amendments)
Dear Sir/Madam,
We are looking for consultancy regarding Withholding Taxes from ISRAEL to different countries.
Please reach me on Mob : 00971-50-7343340.
Will you be able to share the Article number for Salary in the DTAA between India and UK. I have gone thru the withholding tax rates also, but there is no column for Salary as such. Will you be able to guide.
Is there any rate change or what is the TDS rate for Capital Gains in Hong Kong
While importing fabrics from china to India what rate of TDS is applicable for Handling, Shipping Charges, VGM and manifest Charges. Article 8 is applicable is it correct.?
i want to make payment of tuition fees to Singapore. What will be the tds and what documents do I need
What are the TDS rate, surcharge and cess as per DTAA between India and Canada?
I have paid certain sum to a Canada Based NRI during in Sept,2019 towards purchase of a residential flat but did not TDS. I can avail the facility of 26A as provided under 1st Proviso to Section 201(1A) which is applicable ( w.e.f 1st Sept 2019) in case of a NRI payee. I have to calculate interest on the TDS which was deductible in Sept,2019. What are the TDS rate, surcharge and cess as per DTAA between India and Canada?
Recently ahmedabad cit has given order in the case of Chowgule brothers and Ito gandhidham, and dismissed the appeal on grounds not actually the case order was given.
it has taken consideration that DTAA between India and Spore is available only if the tax is paid at one place. T4 the data benefit to the company LACAY SHIPPING, SINGAPORE was denied. can u pls advise if the appeal order is correct or wrong. and if agreed we need to further deeply get discussion on this singapore dtaa matter because 70% of the shipping is operated from singapore. such orders can have a huge impact in the shipping biz.
Whether on-line advertisement(OIDR-Services provider is NRI company) is liable for wHT while making payment? What if payment is made through pre-paid card payment. Pls clarify
One lady received a Thailand Company’s shares from her Mother by way of gift. Which was purchased by her father around 40 years back and after his death the shares recd. by her mother. She got dividend after deduction of TDS from Thailand. So, what would be the tax applicable here in India and how to show it in Income Tax Return? Please guide.
Sir,
My son-in -law, working in Bengaluru for a Germany based company held shares of that company on the basis of a scheme like “70% of purchase price met by the employee and 30% by the company”.
The share is listed in a German stock exchange.
In June 2019 he sold the shares after holding for more than 8 years. Please enlighten me on how the capital gains from this stock sale will be treated for income tax in India, under the Indo -German DTAA.(please note that he is residentof India).
Regards.
MK Nair.
Dear Sir What is the rate of TDS if technical services received from Australia 10% or 15% services received for industrial purpose in Article no 12 3(d) please suggest
rate of tds on sale procceds of property as per dtaa with zambia
can i get the same chart for Singapore as well ?
rate of with holding tax for technical services between india and uae
and between india and saudi arabia for technical services
What is the rate of withholding tax between india and UAE and saudi arabia
As per revised DTTA with Kenya dated 19-02-2018, withholding tax on Fee for Technical Services is 10% instead of 17.5%
Hi,
I wanted know about tax rate b/w India & Singapore, Specifically Service Charges of Training Expense & Professional Charges , Singapore company don’t have INDIA PAN, TRC 10F in this case please advice tax rate
Royalties in Malaysia Country as per DTAA deducted 10%.
PAN Number of Foreign Party is require?
sir, annual membership fees paid to Switzerland, whether TDS is applicable for this remittance. if not what are the relevant article of DTAA
PLZ ADVISE
WHAT IS THE WITHHOLDING TAX RATE FOR AY 16-17 FOR TECHNICAL KNOW HOW FEES PAYABLE TO GERMANY THEY DON’T HAVE PE IN INDIA
RGDS
Percentage of Withholding tax against Royalty payment to Hong Kong company before 1st April`2015 and after 1st April`2015.
Please revert back urgently.
Sir, IF 115-O IS APPLICABLE PLEASE SUGGEST THE RATES FOR THE COMPANY
SUGGEST ALL TRIBUNALS NEED TO FOLLOW IN THE INTEREST OF JUSTICE, ELSE PEOPLE WOULD LOSE CONFIDENCE ON TRIBUNALS,AND THE PEOPLE WOULD GO TO THE HIGH COURTS UNDER ART 226 OR ART 32.. SO HOPE HON TRIBUNALS HONORABLY FOLLOW STRICTLY THR PRINCIPLES OF NATURAL JUSTICE AND RULE OF LAW WHICH ARE PRIMARY REQUIREMENT IN ANY COUNTRY.
thnx for sharing….
good advisory. thanks