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Withhoding Tax Rates - Country Wise




What is Witholding Tax

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.


Following are Country-Wise Applicable Withholding Tax Rates for Your Ready Reference

Country

Dividend

Interest

Royalty

Fee for Technical Services

Albania

10%

10%

10%

10%

Armenia

10%

10%

10%

10%

Australia

15%

15%

10%/15%

10%/15%

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

15%

15%

a) 25% for use of trademark;


b) 15% for others

No separate provision

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

7.50%

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

20%

20%

30%

No separate provision

Latvia

10%

10%

10%

10%

Lithuania

5%*, 15%

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

5% (in some cases 15%)

10%

10%

10%

Myanmar

5%

10%

10%

No separate provision

Morocco

10%

10%

10%

10%

Mozambique

7.50%

10%

10%

No separate provision

Macedonia

10%

10%

10%

10%

Namibia

10%

10%

10%

10%

Nepal

5%**, 10%

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%

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

15% if it is payable in pursuance of any collaboration agreement approved by the Government of India

No separate provision

Poland

10%

10%

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%

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 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%

10%

10%

Spain

15%

15%

10%/20%

20%

Sri Lanka

7.50%

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

12.50%

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

5%****, 10%

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 Mexican States

10%

10%

10%

10%

United Kingdom

15%/10%

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%

To Read About the Residential Status Check Please read here


To Read About the PE Concept for Non Resident please click here

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