Understanding the withholding tax rates for Dividends, Interest, Royalties and Fee for Technical Services is crucial for businesses and investors operating internationally. These rates can vary significantly from one country to another, impacting the net income and overall financial viability of cross-border transactions. In this article, we will analyze the withholding tax rates in various countries for different types of income.
Countrywise Withholding tax rates / Chart below showcases the withholding tax rates for dividends, interest, royalties, and fees for technical services in numerous countries. These rates depend on various factors such as the recipient’s ownership percentage, type of payment, and specific agreements between countries.
For dividends, several nations offer reduced tax rates if the recipient company holds a certain percentage of shares in the paying company. Similar discounts apply to interest income in certain cases. Additionally, the tax treatment for royalties and fees for technical services can be more complex, with varying rates based on the nature of the payment.
It’s important to note that some countries have exemptions, especially for dividends and interest earned by specific entities like the government or central banks.
Navigating through the global landscape of withholding tax rates can be challenging, but it is essential for businesses and investors engaged in cross-border transactions. By understanding the tax rates in different countries and considering specific provisions and exemptions, companies can optimize their financial planning and ensure compliance with relevant tax laws. Considering applicable Double Taxation Avoidance Agreements can also help in making informed decisions and minimizing tax burdens on international earnings.
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.
Global Withholding Tax Rate Chart: Dividends, Interest, Royalties and Fee for Technical Services*
| 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] | 10%-20% | 10%-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% [Note 1] | 10% | 10% |
| Greece | 20% | 20% | 10% | No separate provision |
| Hongkong | 5% | 10% [Note1] | 10% | 10% |
| Hungary | 10% | 10% [Note 1] | 10% | 10% |
| Indonesia | 10% | 10% [Note1] | 10% | 10% |
| Iceland | 10% | 10% [Note 1] | 10% | 10% |
| Iran | 10% | 10% | 10% | 10% |
| Ireland | 10% | 10% [Note 1] | 10% | 10% |
| Israel | 10% | 10% [Note 1] | 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% [Note 1] | 20% | 20% |
| Japan | 10% | 10% [Note 1] | 10% | 10% |
| Jordan | 10% | 10% [Note 1] | 20% | 20% |
| Kazakhstan | 10% | 10% [Note 1] | 10% | 10% |
| Kenya | 10% | 10% | 10% | 10% |
| Korea | 15% | 10% | 10% | 10% |
| Kuwait | 10% [Note 1] | 10% | 10% | 10% |
| Kyrgyz Republic | 10% | 10% [Note 1] | 15% | 15% |
| Libyan Arab Jamahiriya | 20% | 20% | 30% | No separate provision |
| Latvia | 10% | 10% [Note 1] | 10% | 10% |
| Lithuania | 5%*, 15% | 10% [Note 1] | 10% | 10% |
| Luxembourg | 10% | 10% [Note 1] | 10% | 10% |
| Malaysia | 5% | 10% [Note 1] | 10% | 10% |
| Malta | 10% | 10% [Note 1] | 10% | 10% |
| Mongolia | 15% | 15% [Note 1] | 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% [Note 1] | 10% | 10% |
| Myanmar | 5% | 10% [Note 1] | 10% | No separate provision |
| Morocco | 10% | 10% [Note 1] | 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 |
| 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%[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 per cent of the capital of the company paying the dividends.
**5% if 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 per cent of the capital stock of the company paying the dividends.
****5% if recipient company owns at least 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 source (subject to certain condition).
2. Royalties and fees for technical services would be taxable in the country of 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 source at the following rates:
a. 10 per cent in case of royalties relating to the payments for the use of, or the right to use, industrial, commercial or scientific equipment;
b. 20 per cent in case of fees for technical services and other royalties.
4. (a)15 per cent 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 per cent of the gross amount of the dividends, in all other cases
5. The CBDT has clarified that DTAA signed with 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, 2024]
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