Income Tax - Double Tax Avoidance Agreements

Sl.No.	Country DTAA between India and	Effective date in India	Dividend (other than u/s. 115-O) (%)	Tax rate on		Technical Service Fees (%) See Note 4	Remarks
Sl.No.	Country DTAA between India and	Effective date in India	Dividend (other than u/s. 115-O) (%)	Interest (%)	Royalties (%) See Note 4	Technical Service Fees (%) See Note 4	Remarks
1	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 or a local authority; or (b) RBI and the Central Bank of Armenia or any other institution as may be agreed upon.
2	Australia 194 ITR 241	01.04.92 A.Y. 1993-94	15 @	15 @	[See Note 2]	[See Note 1]
3	Austria 251 ITR 97	01.04.2002 A.Y. 2003-04	10 @	10 @	10 @	10 @	—
4	Bangladesh 198 ITR 99	01.04.92 A.Y. 1993-94	10 @ 15 @	10 @	10 @	No seperate provision	10% tax on dividends if at least 10% of the capital is owned by Company; in other cases 15%.
5	Belarus 233 ITR 4	01.04.99 A.Y. 2000-2001	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%.
6	Belgium 228 ITR 79 247 ITR 39	01.04.98 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.
7	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.
8	Brazil 195 ITR 73	01.04.93 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 trade marks taxable at 25%, in other cases tax rate is 15%.
9	Bulgaria 220 ITR 30	01.04.96 A.Y. 1997-98	15 @	15 @	15 @ 20 @	20 @	Royalties relating to Copyrights etc. taxable at 15%, in all other cases 20%
10	Canada 229 ITR 44	01.04.98 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%.
11	China 214 ITR 160	01.04.95 A.Y. 1996-97	10 @	10 @	10 @	10 @	—
12	Croatia PIB Press Release dated 19th January, 2006						On 19th January 2006, the Union Cabinet has approved the signing of the DTAA with Croatia. The DTAA is awaited.
13	Cyprus 218 ITR 70	01.04.93 A.Y. 1994-95	10 @ 15 @	10 @	15 @	10 @	10% tax on dividends if at least 10% of the capital is owned by Company; in other cases 15%. Article 13 deals with Technical Fees, Article 12 deals with Royalties and Fees for included services.
14	Czech Republic 241 ITR 90	01.04.2000 A.Y. 2001-02	10 @	10 @	10 @	10 @	—
15	Denmark 180 ITR 1	01.04.90 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%.
16	Finland 152 ITR 57	01.04.99 A.Y. 2000-01	15 +	10 +	[See Note 2]	[See Note 2]	1 Dividends paid by a resident Finnish Company to an Indian resident are exempted from Finnish tax on dividends as long as an individual Finnish resident is entitled to a tax credit in respect of a resident Finnish Company
	Protocol published in 233 ITR 84						2 Dividends paid by a resident Indian company to a resident Finnish Company controlling at least 10% of the Indian Company’s voting power shall be exempt from Finnish tax.
							3. Interest arising in India and paid to Bank of Finland, Finnfund, Finn Vera Fund and Finnish Export Fund would be exempt from tax in India.
							4. Interest arising in Finland and paid to RBI, NHB, SIDBI, EXIM Bank will be exempt from Finnish tax
17	French Republic 209 ITR 130 244 ITR 134	01.04.95 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.
18	Germany (Federal Republic of Germany) 223 ITR 130	01.04.97 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.
19	Greece 64 ITR 86	01.04.63 A.Y. 1964-65	*	*	*	#	* Dividend, interest and royalty income is chargeable as per domestic law in source country only. # No clause for FTS
20	Hungary 274 ITR 74	01.04.06 A.Y. 2007-08	10 @	10 @	10 @	10 @	Interest derived and beneficially owned by following entities is exempt (i) Government, political sub-division or local authority of other contracting state, (ii) Central Bank of other contracting states (iii) the Hungarian Exim Bank or a resident of Hungary if the interest is paid in respect of a loan made, guaranteed or insured or a credit extended, guaranteed or insured by the Hungarian Bank, (iv) Export Import Bank of India or 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 Exim Bank (v) Any other bank or government financial institution that may be mutually agreed upon between the two contracting states.
21	Iceland 298 ITR 2	04.04.08 A.Y. 2009-10	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 (b) RBI, EXIM Bank and NHB of India, Central Bank of Iceland and (c) any other institution as may be agreed upon
22	Indonesia 171 ITR 27	01.04.88 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%.
23	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.
24	Ireland 254 ITR 245 255 ITR 95	01.04.2002 A.Y. 2003-04	10 @	10 @	10 @	10 @
25	Italy 220 ITR 3	01.04.96 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.
26	Japan 182 ITR 380 245 ITR 15 284 ITR 64	01.04.90 A.Y. 1991-92	10 @	10 @	10 @	10 @	10% rate is applicable with effect from 1st April 2007 vide Notification No. 186/2006 dated 19th July, 2006
27	Jordan 241 ITR 69	01.04.2000 A.Y. 2001-02	10 @	10 @	20 @	20 @	—
28	Kazakhstan 228 ITR 162	01.04.98 A.Y. 1999-2000	10 @	10 @	10 @	10 @	—
29	Kenya 157 ITR 8	01.04.84 A.Y. 1985-86	15 @	15 +	20 +	No separate provision	There is a specific clause for management and processional fees which is taxable income @ 17.5%
30	Korea (South) 165 ITR 191	01.04.86 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%.
31	Kuwait 295 ITR 44	01.04.08 A.Y. 2009-10	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 (b) Central Banks of India and Kuwait and any other government agency or financial institution as may be agreed upon
32	Kyrgyz Republic 248 ITR 218	1.4.2002 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.
33	Libya 137 ITR 27	01.04.83 A.Y. 1984-85	*+	*+	*+	No separate provision	* Dividend, interest, royalty will be taxable as per domestic law of source country.
34	Luxembourg PIB Press release dated 2nd June, 2008						The DTAA is signed on 2nd June, 2008. However, it is yet to be notified
35	Malaysia 270 ITR 62	01.04.2004 A.Y. 2005-06	10@	10@	10@	10@	Interest derived and beneficially owned by the following entities is exempt (a) in case of Malaysia, Government of Malaysia; Government of the State; Bank Negara Malaysia, the local authorities, the statutory bodies and Export-Import Bank of Malaysia Berhad (Exim Bank) (b) in case of India, the Government, political sub divisions, statutory bodies, local authorities, Exim Bank, RBI, IFCI, IDBI, NHB, SIDBI and ICICI (c) any other institutions as may be agreed from time to time between the competent authorities of the Contracting States.
36	Malta 218 ITR 13	01.04.96 A.Y. 1997-98	10 @ 15 @	10 @	15 @	10 @	10% tax on dividends if at least 25% of the capital is owned by Company; in other cases 15%. Article 12 deals with Royalties and Fees for included services. Article 13 deals with Technical Fees.
37	Mauritius 146 ITR 214 243 ITR 25	01.04.82 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.
38	Mexico PIB release dated 10.09.07						The DTAA is signed on 10th September, 2007 however it is yet to be notified
39	Mongolia 222 ITR 44	01.04.94 A.Y. 1995-96	15 @	15 @	15 @	15 @	—
40	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 (a) the Government, a political sub-division or a local authority; or (b) RBI and the Central Bank of Montenegro.
41	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.
42	Myanmar 314 ITR 6	01.04.2010 A.Y. 2010-11	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 (b) (i) in case of Myanmar, the Central Bank of Myanmar, Myanmar Foreign Trade Bank, Myanmar Investment and Commercial Bank, Myanmar Economic Bank (ii) in case of India, the RBI, EXIM Bank, NHB, SIDBI (c) any other institutions as may be agreed from time to time between the competent authorities of the Contracting States.
43	Namibia 236 ITR 230	01.04.2000 A.Y. 2001-02	10 @	10 @	10 @	10 @	—
44	Nepal 175 ITR 33	01.04.89 A.Y. 1990-91	10 @ 15 @	10 @ 15 @	15 @	No separate provision	10% tax on dividends if at least 10% of the capital is owned by Company; in other cases 15%. Interest taxable @ 10% if recipient is bank carrying on bona fide banking business, otherwise 15%.
45	Netherlands 177 ITR 72 239 ITR 56	01.04.1997 [01.04.87 Air transport] A.Y. 1998-99	10 @	10 @	10 @	10 @	Reduced rates for dividend and interest from 1.4.1997. Interest earned for 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
46	New Zealand 166 ITR 90 225 ITR 15 242 ITR 147	01.04.87 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.
47	Norway 169 ITR 15 CBDT Notification No. 368/2006, dated 15th December 2006	01.04.87 A.Y. 1988-89	15 @ 25 @	15 @	10 @	10 +	15% tax on dividend if at least 25% of the capital is owned by Company and the dividends are attributable to new contribution, other cases dividend taxable at 25% Royalties and Fees for Technical Services taxable at 10% as per Notification No. 368/2006 and as per lower rate specified in dated 15th Indo- German DTAA w.e.f. 26.10.1996.December 2006
48	Oman (Sultanate of) 228 ITR 21	01.04.98 A.Y. 1998-99	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.
49	Philippines 219 ITR 60	01.04.95 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.
50	Poland 182 ITR 147	01.04.90 A.Y. 1991-92	15 @	15 @	22.5 @	22.5 @	* Dividend should relate to new contribution after 1.4.1990.
51	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.
52	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.
53	Romania 171 ITR 170	01.04.88 A.Y. 1989-90	15 @ 20 @	15 @	22.5 @	22.5 @	15% tax on dividend if at least 25% of the capital is owned by company, 20% in other cases.
54	Russian Federation 233 ITR 90	01.04.99 A.Y. 2000-01	10 @	10 @	10 @	10 @	—
55	Saudi Arabia 286 ITR 87	01.04.2007 A.Y. 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
56	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 (a) the Government, a political sub-division or a local authority; or (b) RBI and Central Bank or National Bank.
57	Singapore 209 ITR 1	01.04.94 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%.
57	Modified via Protocol signed pursuant to CECA 276 ITR 142	01.04.94 A.Y. 1995-96	10 @ 15 @	10 @ 15 @	10 @	10 @	Article on Capital Gains similar to India - Mauritius DTAA subject to satisfaction of additional conditions in the Limitation on Benefits - via Protocol dated 29th June, 2005 (effective A. Y. 2006-2007).
58	Slovenia 275 ITR 144	01.04.06 A.Y. 2006-07	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.
59	South Africa 231 ITR 23	01.04.98 A.Y. 1999-2000	10 @	10 @	10 @	10 @	—
60	Spain 214 ITR 197	01.04.96 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.
61	Sri Lanka 143 ITR 7	01.04.81 A.Y. 1982-83	15 +	10 @	10 @	No separate provision	—
62	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
63	Sweden 229 ITR 11	01.04.98 A.Y. 1999-2000	10 @	10 @	10 @	10 @	—
64	Swiss Confederation 214 ITR 223248 ITR 209	01.04.95 A.Y. 1996-97	10 @	10 @	10 @	10 @	Extensive Modifications to many articles including P.E. come into effect from 1.4.2001.
65	Syria 312 ITR 9	01.04.09 A.Y. 2009-2010	5 @ 10 @	10 @	10 @	No separate provision	5% tax on dividend at least 10% of capital in held by company, 10% in all other cases Interest derived and beneficially owned by following entities is exempt (a) the Government, a political sub-division or a local authority; or (b) RBI and the Central Bank of Syria
66	Tanzania 132 ITR 35	01.01.82 A.Y. 1983-84	10 + 15 +	12.5 +	20 +	No separate provision	Dividend is taxable at 10% if the recipient is a company which holds at least 10% of the shares during at least 6 months preceding the date of payment of dividend; tax on dividend at 15% in all other cases.
67	Tajikistan 315 ITR 1	01.04.2010 A.Y. 2010-11	5 @ 10 +	10 @	10 @	No separate provision	Dividend is taxable at 5% where the beneficial owner is a company holding atleast 25% of the share capital. 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 (India) and the National Bank, Tajikistan. (c) Any other institution agreed upon between the Contracting States.
68	Thailand 161 ITR 82	01.01.87 A.Y. 1988-89	15 @ 20 @	10 + 25 +	15 +	No separate	* Dividend taxable at 15% if payer is industrial company and payee provision 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%.
69	Trinidad and Tobago 240 ITR 184	01.04.2000 A.Y. 2001-02	10 @	10 @	10 @	10 @	—
70	Turkey 224 ITR 145	01.04.94 (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%.
71	Turkmenistan 228 ITR 44	01.04.98 A.Y. 1999-2000	10 @	10 @	10 @	10 @	—
72	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.
73	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%
74	United Arab Emirates 205 ITR 49	01.04.94 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.
74	Notification No. 282 dated 28.11.07 295 ITR 40	01.04.94 A.Y. 1995-96	10 @	5 @ 12.5 @	10 @	No separate provision	Interest exempt in case of Government, political sub-division or a local authority and Central Banks of the two states
75	United Arab Republic (Egypt) 74 ITR 11	01.01.70 A.Y. 1971-72 (01.01.61operation of aircraft)	*	*	Taxable only in source country	No separate provision	* For rate of tax and basis of taxation refer to the DTAA provisions.
76	United Kingdom 206 ITR 235	01.04.94 A.Y. 1995-96	15 @	15 @ 10 @	[See Note 2]	[See Note 2]	Interest taxable at 10% if beneficial owner is bank which is resident, in other cases at 15%. Interest paid to following entities is exempt: a) Government, political sub-division or a local authority b) RBI, United Kingdom Export Credits Guarantee Department, EXIM Bank, Export Credits and Guarantee Corporation of India
77	United States of America 187 ITR 102	01.04.91 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 limitation of benefits and P.E. Tax Articles. Protocol is very important.
78	Uzbekistan 223 ITR 60	01.04.93 A.Y. 1994-95	15 @	15@	15 @	15 @	* Interest received from transaction approved by source country’s government will be exempt. In other cases normal provision of domestic tax law will apply.
79	Vietnam (Socialist Republic of Vietnam) 214 ITR 137	01.04.96 A.Y. 1997-98	10 @	10 @	10 @	10 @	—
80	Zambia 146 ITR 233	A.Y. 1979-80	5 + 15 +	10 +	10 +	As per domestic law of both countries	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.