Withholding Tax Rates
Know withholding tax rates are important for people making payments to a foreign company or an NRI. This ensures proper taxes are paid by deduction or withholding. There are countries with which India has a Double Taxation Avoidance Agreement.
What is the Withholding Tax Rate in India?
The current rate for withholding tax in India for making payments to non-residents are:
- Interest – 20%
- Dividends paid by domestic companies – Nil
- Royalties – 10%
- Technical services – 10%
- Individuals – 30% of the income
- Companies – 40% of the net income.
Note: The rates are general and are applicable in respect of countries that India does not have a Double Taxation Avoidance Agreement.
Countries with which India has Double Taxation Avoidance Agreement, the taxes are determined as follows:
Country | Dividend | Interest | Royalty | Technical service fee |
Albania | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Armenia | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Australia | 15% | 15% |
| Same as the royalty |
Austria | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Bangladesh | 10% if the recipient holds at least 10% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | No provision |
Belarus | 10% if the recipient holds at least 25% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | 15% |
Belgium | 15%` | 15% if loan is granted by bank | 10% | 10% |
Botswana | 7.5% if the recipient holds at least 25% of the shares of the company paying dividends 10% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Brazil | 15% | 15% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 25% for trademark use 15% for others | 15% |
Bulgaria | 15% | 15% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% for literary, artistic, scientific work other than that used for television or radio 20% for other cases | 20% |
Canada | 15% if the recipient holds at least 10% of the shares of the company paying dividends 25% for other cases | 15% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10 – 15% | 10 – 15% |
China | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Columbia | 5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Croatia | 5% if the recipient holds at least 10% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Cyprus | 10% if the recipient holds at least 10% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | 15% or 10% |
Czech Republic | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Denmark | 15% if the recipient holds at least 25% of the shares of the company paying dividends 25% for other cases | 10% if loan is granted by bank 15% for others Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 20% | 20% |
Estonia | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Ethiopia | 7.5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Finland | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Fiji | 5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
France | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Georgia | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Germany | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Hungary | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Indonesia | 10% if the recipient holds at least 25% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | No provision |
Iceland | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Ireland | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Israel | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Italy | 15% if the recipient holds at least 10% of the shares of the company paying dividends 25% for other cases | 15% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 20% | 20% |
Japan | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Jordan | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 20% | 20% |
Kazakhstan | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Kenya | 15% | 15% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 20% | 17.5% |
Korea | 15% if the recipient holds at least 20% of the shares of the company paying dividends 20% for other cases | 10% if interest is paid to a bank 15% for others | 15% | 15% |
Kuwait | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% | 10% |
Kyrgyz Republic | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | 15% |
Latvia | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Lithuania | 5% if the recipient holds at least 10% of the shares of the company paying dividends 15% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Luxembourg | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Malaysia | 5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Malta | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Mongolia | 15% | 15% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | 15% |
Mauritius | 5% if the recipient holds at least 10% of the shares of the company paying dividends 15% for other cases | No provision | 15% | No provision |
Montenegro | 5% or 15% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Myanmar | 5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | No provision |
Morocco | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Mozambique | 7.5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | No provision |
Namibia | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Nepal | 5% if the recipient holds at least 25% of the shares of the company paying dividends 10% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | No provision |
Netherlands | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
New Zealand | 15% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Norway | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Oman | 10% if the recipient holds at least 10% of the shares of the company paying dividends 12.5% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | 15% |
Philippines | 15% if the recipient holds at least 10% of the shares of the company paying dividends 20% for other cases | 10% if interest is paid to financial institution or an insurance company 15% in other cases | 15% if payable if the collaboration is approved by the Government of India | No provision |
Poland | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | 15% |
Portuguese Republic | 10% if recipient holds 25% of the capital stock of the company paying dividends 15% | 10% | 10% | 10% |
Qatar | 5% if the recipient holds at least 10% of the shares of the company paying dividends 10% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Romania | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Russian Federation | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Saudi Arabia | 5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | No provision |
Serbia | 5% if the recipient holds at least 25% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Singapore | 10% if the recipient holds at least 25% of the shares of the company paying dividends 15% for other cases | 10% of loan is granted by bank 15% for others | 10% | 10% |
Slovenia | 15% if the recipient holds at least 10% of the shares of the company paying dividends 15% for other cases | 10% | 10% | 10% |
South Africa | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Spain | 15% | 15% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% if royalties relating to the payments for use or the right to use, industrial, commercial or scientific equipment. 20% for technical services and other royalties | 20% |
Sri Lanka | 7.5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Sudan | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Sweden | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Swiss Confederation | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Syrian Arab Republic | 5% if the recipient holds at least 10% of the shares of the company paying dividends 10% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | No provision |
Tajikistan | 5% if the recipient holds at least 25% of the shares of the company paying dividends 10% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | No provision |
Tanzania | 5% if recipient owns 25% share in the company paying the dividend 10% for others | 10% | 10% | No provision |
Thailand | 15% if the recipient holds at least 10% of the shares of the company paying dividends 20% for other cases | 10% of interest is received by a financial institution or insurance company 25% for others | 15% | No provision |
Trinidad and Tobago | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Turkey | 15% | 10% if recipient is bank 15% in other cases Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 15% | 15% |
Turkmenistan | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Uganda | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Ukraine | 10% if the recipient holds at least 25% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
United Arab Emirates | 10% | 5% if loan granted by bank 12.5 for other cases | 10% | No provision |
United Mexican States | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
United Kingdom | 15% - if dividends are paid out of income deriving from movable and immovable property 10% on other cases | 10% if recipient is bank 15% in other cases Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% if royalties relating to the payments for use or the right to use, industrial, commercial or scientific equipment. 20% for technical services and other royalties | 10% if royalties relating to the payments for use or the right to use, industrial, commercial or scientific equipment. 20% for technical services and other royalties |
United States | 15% if the recipient holds at least 10% of the shares of the company paying dividends 25% for other cases | 10% of loan is granted by bank or if you are paying interest to an insurance company 15% for others | 10% or 15% | 10% or 15% |
Uruguay | 5% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Uzbekistan | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Vietnam | 10% | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
Zambia | 5% if the recipient holds at least 25% of the shares of the company paying dividends 15% for other cases | 10% Dividend or interest earned by government and RBI is exempt from taxation in the country of source | 10% | 10% |
If the person who is required to deduct the sum in accordance with the IT Act does not deduct, he shall be deemed as an ‘assessee in default’ and he will be liable to pay interest and penalty.
Disclaimer
Credit Card:
Credit Score:
Personal Loan:
Home Loan:
Fixed Deposit:
Copyright © 2025 BankBazaar.com.