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DOUBLE TAX AVOIDANCE AGREEMENT

 

 

Dividend

Interest

 

 

 

No.

Country DTAA between India &

General Rate

Special Rate [Note 5]

Level of voting control (%)

General Rate

Special Rate for Bank

Special Rate for Govt.

Royalties

Fees For Technical Services

Remarks

01.

Armenia

10

 

 

10#

 

E

10

10

Effective from AY 2006-07. # Interest derived and beneficially owned by certain entities exempt.

02.

Australia

15

 

 

15

 

 

15#$

Note 2

#Royalty @ 10% for Equipment Rental and for services ancillary or subsidiary thereto.

03.

Austria

10

 

 

10

 

E

10

10

Effective from AY 2003-04

04.

Bangladesh

15

10

10%

10

 

E

10

Note 1

 

05.

Belarus

15

10

25%

10

 

E

15$

15$

Effective from AY 2000-01

06.

Belgium

15

 

 

15

10

 

10#

10#

#Rate & scope modified on account of Indo-German Treaty

07.

Botswana

10

7.5

25%

10

 

E

10

10

Effective from AY 2010-11

08.

Brazil

15

 

 

15

 

E

25#$

Note 1

#Royalties other than “Royalty arising from use or right to use trade marks” taxable at 15%

09.

Bulgaria

15

 

 

15

 

E

20#$

20$

#Royalties relating to Copyrights etc. taxable at 15%

10.

Canada

25

15

10%

15

 

E

15#$

Note 2

#Royalty @ 10% for Equipment Rental and for services ancillary or subsidiary thereto.

11.

China

10

 

 

10

 

E

10

10

 

12.

Cyprus

15

10

10%

10

 

E

15#$

10#

#Royalties include “Fees for included services”

13.

Czech Republic

10

 

 

10

 

E

10

10

Effective from AY 2001-02

14.

Denmark

25

15

25%

15+

10+

E

20$

20$

 

15.

Egypt

Note 4

 

 

Note 4

 

E

Note 3#

Note 1

#Royalties not taxable in the country of residence

16.

Finland

15+

10+

 

 

 

 

15#$

Note 2

Effective from AY 2000-01 #Royalty @ 10% for Equipment Rental and for services ancillary or subsidiary thereto.

17.

France

10

 

 

10

 

E

10

10

 

18.

Germany

10

 

 

10

 

E

10

10

 

19.

Greece

Note 3#

 

 

Note 3#

 

E

Note 3#

Note 1

#Dividend, interest & Royalties not taxable in the country of residence

20.

Hungary

10*

 

 

10*#

 

E

10*

10*

Effective from AY 2007-08, *For rates applicable upto AY 2006-07, please refer to Treaty # Interest received and beneficially owned by certain entities is exempt.

21.

Iceland

10

 

 

10

 

E

10

10

Effective from AY 09-10

22.

Indonesia

15

10

25%

10

 

E

15$

Note 1

 

23.

Ireland

10

 

 

10

 

E

10

10

Effective from AY 2003-04

24.

Israel

10

 

 

10

 

 

10

10

 

25.

Italy

25

15

10%

15+

 

E

20$

20$

 

26.

Japan (Revised)

10

 

 

10#

 

E

10$

10$

#Interest derived and beneficially owned by certain entities is exempt.

27.

Jordan

10

 

 

10

 

E

20$

20$

Effective from AY 2001-02

28.

Kazakhstan

10

 

 

10

 

E

10

10

 

29.

Kenya

15

 

 

15+

 

E

20+$

17.5+$

 

30.

Korea (South)

20

15

20%

15

10

E

15$

15$

 

31.

Kuwait

10

 

 

10

 

E

10

10

Effective from AY 2009-10

32.

Kyrgyz Republic

10

 

 

10#

 

E

15$

15$

Effective from AY 2003-04. #Interest derived and beneficially owned by certain entities is exempt

33.

Libya

Note 3#

 

 

Note 3#

 

E

Note 3#

Note 1

#Dividend, interest & Royalties not taxable in the country of residence

34.

Malaysia

10

 

 

10#

 

E

10

10

Effective from AY 2005-06. # Interest derived and beneficially owned by certain entities is exempt.

35.

Malta

15

10

25%

10

 

E

15#$

10#

#Royalties include “Fees for included services”

36.

Mauritius

15

5

10%

#

E

E

15+$

Note 1

#Exempt if the transaction giving rise to the debt-claim has been approved in this regard by the Government, else taxable as per Domestic Law

37.

Mongolia

15

 

 

15

 

E

15$

15$

 

38.

Montenegro

15

5

25%

10

 

E

10

10

Effective from AY 09-10

39.

Morocco

10

 

 

10#

 

E

10

10

 

40.

Myanmar

5

 

 

10

 

E

10

Note 8

Effective from AY 2011-12

41.

Namibia

10

 

 

10

 

E

10

10

Effective from AY 2001-02

42.

Nepal

15

10

10%

15

10

E

15$

Note 1

 

43.

Netherlands

10

 

 

10

 

E

10

10

 

44.

New Zealand

15

 

 

10

 

E

10

10

Protocol restricting treaty benefits to Indian or New Zealand residents

45.

Norway

25

15#

25%

15

 

E

Note 3*

10+

#Applicable for new contribution only. Rate of fees for Technical services modified as per Indo-German DTAA. *There is possibility that the rate of royalty may also be taken @ 10% instead of treatment as per domestic law However, this is subject to different interpretation. As per protocol, the capital gain tax is changed to 10%.

46.

Oman

12.5

10

10%

10

 

E

15$

15$

 

47.

Philippines

20

15

10%

15#

10

E

15 @ $

Note 1

#10% in case of Fis, Ins. Co. and on public issues of bond, debentures, etc. @ subject to approval of agreement

48.

Poland

15#

 

 

15

 

E

22.5$

22.5$

#Dividend should relate to new contribution after 1.4.1990

49.

Portuguese Republic

15

10#

25%

10#

 

E

10

10

Effective from AY 2002-03. #Only if the capital is owned by a company for an uninterrupted period of 2 years prior to payment of the dividend.

50.

Qatar

10

5

10%

10

E

E

10

10

Effective from AY 2002-03.

51.

Romania

20

15

25%

15

 

E

22.5$

22.5$

 

52.

Russian Federation

10

 

 

10

 

E

10

10

Effective from AY 2000-01

53.

Saudi Arabia

5

 

 

10

 

E

10

#

#Tax on fees for technical service to be decided after five years after review of tax treaty.

54.

Singapore

15

10

25%

15#

10

 

10

10

#10% in case of Ins. Co. or similar Fis.

55.

Slovenia

15

5

10%

10

 

E

10

10

Effective from AY 2006-07.

56.

South Africa

10

 

 

10

 

E

10

10

 

57.

Spain

15

 

 

15

 

E

10#

20#

#Rate & Scope modified on account of Indo-German Treaty

58.

Srilanka

15+

 

 

10

 

E

10

Note 1

 

59.

Sudan

10

 

 

10#

 

E

10

10

Effective from AY 2006-07. #Interest derived and beneficially owned by certain entities is exempt

60.

Sweden

10

 

 

10#

 

E

10

10

 

61.

Swiss Confederation

10

 

 

10#

 

E

10

10

 

62.

Serbia

15

5

25%

10

 

E

10

10

 

63.

Syria

E

 

 

7.5+

 

E

10+

Note 1

 

64.

Tajikistan

10

5

25%

10

 

E

10

 

Effective from AY 2011-12

65.

Tanzania

15+

10+#

10%

12.5+

 

E

20+$

Note 1

#Only if the shares held during at least 6 months preceding payment of dividend

66.

Thailand

Note 4

 

 

25+

10+#

E

15+$

Note 1

#If recipient is financial institution including insurance company

67.

Trinidad & Tobago

10

 

 

10

 

E

10

10

Effective from AY 2001-02

68.

Turkey

15

 

 

15

10#

E

15$

15$

#also applicable to financial institution

69.

Turkmenistan

10

 

 

10

 

E

10

10

 

70.

Uganda

10

 

 

10#

 

E

10

10

Effective from AY 2006-07. # Interest derived and beneficially owned by certain entities exempt.

71.

Ukraine

15

10

25%

10

 

E

10

10

Effective from AY 2003-04

72.

United Arab Emirates

15

5

10%

12.5

5

E

10

Note 1

 

73.

United Arab Republic[Egypt]

Note 4

 

 

Note 4

 

E

Note 3#

Note 1

#Royalties not taxable in the country of residence

74.

United Kingdom

15

 

 

15

10

E

15 # $

Note 2

#Royalties @ 10% for Equipment Rental and for services ancillary or subsidiary thereto

75.

United States of America

25

15

10%

15

10*

E

15 # $

Note 2

#Royalties @ 10% for Equipment Rental and for services ancillary or subsidiary thereto. *Also applicable to bonafide Fis

76.

Uzbekistan

15

 

 

15

 

E

15$

15$

 

77.

Vietnam

10

 

 

10

 

E

10

10

 

78.

Zambia

15+

5+#

25%

10+

 

E

10+

Note 1

#Only if the shares held during at least 6 months preceding payment of dividend

      
Note: The rates mentioned above are the rates of tax applicable in the source country. Taxability in the country of residence would be as per the domestic law of country of residence, unless otherwise specified.

+ Beneficial ownership not required

E Exempt from tax

$ For agreement made after 31st May, 1997, the rate of tax under the Income Tax Act on royalty or fees for technical services receivable by a foreign company is reduced to 20% (plus Surcharge & Cess, as applicable) by the Finance Act, 1997. As per section 90(2), this rate may be adopted if is lower than rates under DTAA. The rate is reduced to 10% (plus surcharge & cess, as applicable) for agreements entered into on or after 31st May, 2005 vide Finance Act, 2005.

Note 1: There is no separate provision for fees for Technical Services under the Treaty. Therefore, the same may be taxed under “Business Profits” or “Independent Personal Services” as per relevant DTAA, whichever is applicable.

Note 2: There is no separate provision for Fees for Technical Services under the Treaty. Therefore, the same way be taxed under “Business Profits” or “Independent Personnel Services” as per relevant DTAA, whichever is applicable.

Note 3: Taxable as per Domestic Law.

Note 4: Refer Treaty for detailed provisions.

Note 5: Special Rate of Tax on Dividend (other than Section 115-O Dividend) as mentioned in col. 4 is applicable if the recipient is a company beneficially holding at least specified percentage of voting control (mentioned in col, 5) in the company declaring Dividend.

Note 6: The above rates should be applied after carefully analysing and applying each Article of the Treaty and the Protocols, if any.

Note 7: Dividend u/s. 115-O is exempt u/s. 10(34) of the IT Act, 1961.

Note 8: Contracting States will review the provisions of this Agreement after a period of 4 years from the date on which this Agreement enters into force in order to consider the inclusion of an Article on “Fees for Technical Services” within the scope of this Agreement.

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