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DOUBLE TAX AVOIDANCE AGREEMENTS

 

Sl.No.

 

Country DTAA between India and

Effective date in India

Tax rate on

Technical Service Fees (%)See Note 4

Remarks

Dividend
(other
than u/s.115-O)(%)

Interest
(%)

Royalties
(%)
See Note 4
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 institutions as may be agreed upon. 
2 Australia 194 ITR 241 01.04.92
A.Y. 1993-94		 15 @  15 @  [See Note 2]  [See Note 2] —
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 separate
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 @		 Royalties arising from use or right to use trademarks taxable at 25%, in  other cases tax rate is 15%.Fees for Technical Services are covered under Royalty article  as per protocol 
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 19-Jan-06		 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 / 15* @ 10% tax on dividends if at least 10% of the capital is owned by Company; 
in other cases 15%.  * Technical Fees are taxable at 10% under Article 13, Fees for included services taxable at 15% under Article 12  
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

Estonia
346 ITR 143

 

01.04.2013
A.Y 2014-15

 

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 of the other contracting state

(b) (i) in case of India, the Reserve Bank of India and

(ii) in case of Estonia,the Bank of Estonia

(c) any other institution as may be agreed upon from time to time between the competent authorities of the contracting states

For LOB Clause – Refer Note 5.
17

Ethiopia
353 ITR 78

 

01.04.2013
A.Y 2014-15

 

 

7.5@

 

 10@ 10@ 10@

Interest derived and beneficially owned by following entities is exempt

(a) the Government, a political sub-division or a local authority of the other contracting state

(b) (i) in case of India, the Reserve Bank of India and

(ii) in case of Ethiopia,the National Bank of Ethiopia

(c) any other institution as may be agreed upon from time to time between the competent authorities of the contracting states

For LOB Clause – Refer Note 5
18 Finland 324 ITR 1 01.04.2011
A.Y. 2012-13		 10 @  10 @  10 @ 10 @
  1. Interest arising in India and paid to state of Finland, or a local authority or a statutory body thereof, Finnfund, Finn Vera Fund and  other specified entities would be exempt from tax in India.
  2. Interest arising in Finland and paid to Government of India, a political  sub-division, local authority or statutory body thereof, RBI, EXIM NHB Bank and other specified entities will be exempt from Finnish tax
19 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.
20 Georgia 
341 ITR 1		 01.04.2012
A.Y 2013-14		 10 @ 10 @ 10@ 10@ Interest will be exempt from tax if it is derived and beneficially owned by
In case of India,

(i) the Government, a political sub-division or a local authority
(ii) the Reserve Bank of India, the Export Import Bank of India, the National Housing bank.   
(b) In case of Georgia
(i)the Government or local authority (ii) The National Bank of Georgia  (c) any other institution government agencies, political administrative sub-divisions as agreed from time to time.
21 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.
22 Greece 64 ITR 86  01.04.63
A.Y. 1964-65 		 *  *  *  No separate
provision		 * Dividend, interest and royalty income is chargeable as per domestic law in source country only.
23 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
24 Iceland
298 ITR 2		 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) RBI, EXIM bank and NHB of India, Central Bank of Iceland and
c) any other institution as may be agreed upon.
25 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%.
26 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. 
27 Ireland
254 ITR 245
255 ITR 95 		 01.04.2002
A.Y. 2003-04		 10 @  10 @  10 @  10 @   —
28 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.
29 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 o.  186/2006 dated 19th July, 2006
30 Jordan
241 ITR 69 		 01.04.2000
A.Y. 2001-02		 10 @  10  @  20 @  20 @  —
31 Kazakhstan
228 ITR 162 		 01.04.98
A.Y. 1999-2000		 10 @  10 @ 10 @  10 @  —
32 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 professional fees which is taxable income @ 17.5 %.
33 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%.
34 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.
35 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.
36 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.
37 Lithuania
346 ITR 116		 01.04.2013
A.Y 2014-15		 *5@ 15@ **10@ 10@ 10@ *5% tax on dividends if at least 10% 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
(b) (i) in case of India, the Reserve Bank of India, the Export-Import Bank of India, the National Housing Bank and
(ii) in case of Lithuania,the Bank of Lithuania
(c) any other financial institution wholly owned by the Government as agreed upon from time to time between the competent authorities of the Contracting states. For LOB Clause – Refer Note 6
38 Luxembourg
318 ITR 9		 01.4.2010
AY 2011-12		 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 of Luxembourg 
(b) in case of India, the RBI, EXIM and NHB
(c)any other institutions as may be agreed from time to time between competent authorities of the Contracting States the 
39 Malaysia
270 ITR 62		 01.04.2004
A.Y. 2005-06 		 10@  10@ 10@ 10@ Interest derived and beneficially owned by following entities is exempt

(a)  in case of Malaysia, Government of Malaysia; Government of 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
40 Malta
218 ITR 13 		 01.04.96
A.Y. 1997-98 		 10 @
15 @ 		 10 @  15 @  10 / 15* @  10% tax on dividends if at least 25% of the capital is owned by Company;
in other cases 15%. * Technical Fees are taxable at 10% under Article 13, Fees for included services taxable at 15% under Article 12
41 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.
42 Mexico
329 ITR 7		 01.04.2011
A.Y. 2012-13		 10 @ 10 @ 10 @ 10 @ 1 Interest arising in either state would be exempt from tax if it is derived it is derived / paid by the government, political sub-division, local  authority or central bank of the other state   2 Interest arising in Mexico and paid to RBI, EXIM bank and NHB will  be exempt from Mexican tax.           3 Interest arising in India and paid to Banco de Mexico, Banco Nacional  de Comercio Exterior, S.N.C, Nacional Financiera S.N.C. and Banco  Nacional de Obras y Servicios, S.N.C. will be exempt from Indian tax.
43 Mongolia
222 ITR 44 		 01.04.94
A.Y. 1995-96		 15 @   15 @  15 @  15 @  —
44 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.
45 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
46 Mozambique 
335 ITR 65		 01.04.2012
A.Y 2013-14		 7.5 @ 10 @ 10 @ No separate
provision *		 Interest derived and beneficially owned by following entities will be exempt

(a)The Government, a political sub-division or a local authority 
(b) (i) In case of India, the Reserve Bank of India, the Export-Import Bank of India, the National Housing Bank and (ii) in case of Mozambique, the Bank of Mozambique
(c) any other institution as agreed upon from time to time between the competent authorities. *Any remuneration for  technical assistance relating to the use of or the right to use the right or property referred to in the definition of property is  included in the term royalty. 
47 Myanmar
314 ITR 6		 01.04.2010
A.Y. 2011-12		 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
48 Namibia
236 ITR 230 		 01.04.2000
A.Y. 2001-02		 10 @  10 @  10 @  10 @   —
49 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%.
50 Netherlands
177 ITR 72
239 ITR 56		 01.04.1997
[01.04.87 for Air transport]
A.Y. 1998-99 		 10 @  10 @   10 @  10 @  Reduced rates for dividend and interest from 1.4.1997. Interest earned 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.
51 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.
52 Norway
169 ITR 15 CBDT  Notification No. 368/2006 
dated 15 Dec-06		 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, dated 15 December 2006 and as per lower rate specified in Indo- German DTAA w.e.f. 26-10-.1996. 
53 Oman (Sultanate of)
228 ITR 21		 01.04.98
A.Y. 1999-00		 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.
54 Philippines
219 ITR 60		 01.04.95
A.Y. 1996-97		 15 @
20 @		 10 @ 15 @ 15 @ No separate provision owned by Company; in other cases 20%. Interest at 10% in hands of financial 
55 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.
56 Portuguese 
Republic 244 ITR 57		 1.4.2001
 2002-03		 10 @
 		 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.
57 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.
58 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.
59 Russian Federation
233 ITR 90		 01.04.99
A.Y. 2000-01		 10 @ 10 @ 10 @ 10 @ —
60 Saudi Arabia
286 ITR 87		 01.04.2007
AY 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
61 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.
62 Singapore 209 ITR 1
Modified via Protocol signed pursuant to CECA
276 ITR 142
Further Modified via Protocol 
337 ITR 93		 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
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). Erstwhile Article 28 is deleted and is replaced with new Article 28. 
This Article relates to Exchange of Information.
63 Slovenia
275 ITR 144		 01.04.06
A.Y. 2007-08		 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.
64 South Africa
231 ITR 23		 01.04.98
A.Y. 1999-2000		 10 @ 10 @ 10 @ 10 @ —
65 Spain214 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. 
66 Sri Lanka
143 ITR 7		 01.04.81
A.Y. 1982-83		 15 +  10 @  10 @ No separate
provision		 —
67 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 
(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
68 Sweden
229 ITR 11		 01.04.98
A.Y. 1999-2000		 10@  10@  10@  10@  —
69 Swiss Confederation
214 ITR 223
248 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.
70 Syria
312 ITR 9		 01.04.09
A.Y. 2010-2011		 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
71 Tajikistan
315 ITR 1		 01.04.2010
A.Y. 2011-12		 5 @
10 +		 10 @ 10 @ No separate
provision		 Dividend is taxable at 5% where the beneficial owner is a company holding at least 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
72 Tanzania 132 ITR 35 Notification No. 8/2012-FT& TR-II[F.NO.503/ 02/2005-FTD-II]/ S.O.NO.303(E), Dated 16-2-2012. 01.01.82
A.Y 1983-84 to A.Y 2012-13
01.04.2012
.Y. 2013-14

10+
15 + 
5@
* 10@

 12.5+
10@**		 20+
10@		 No separate
provision
No separate
provision		 *Dividend is taxable at 5% where the beneficial owner is a company holding at least 25% of the share capital. Tax on dividend at 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) in case of India, RBI, Export-Import Bank of India, the National Housing Bank

(c)in case of Tanzania, the Bank of Tanzania

(d) or any other institution as agreed upon from time to time.
73 Thailand
161 ITR 82		 01.01.87
A.Y. 1988-89		 15 @  
20 @ 		 10 +
25 +		 15 + No separate
provision		 Dividend taxable at 15% if payer is industrial company and payee 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%.
74 Trinidad and Tobago
240 ITR 184		 01.04.2000
A.Y. 2001-02		 10@  10@  10@  10@  —
75 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%.
76 Turkmenistan
228 ITR 44		 01.04.98
A.Y. 1999-2000		 10 @ 10 @ 10 @ 10 @ —
77 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
78 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% 
79 United Arab  Emirates 205 ITR 49 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		 Tax on interest at 5% in cases of banks, etc. and at 12.5% in all other cases.   
Interest exempt in case of Government, political sub-division or a local authority and Central Banks of the two states
80 United Arab  Republic (Egypt)
74 ITR 11		 01.01.70
 A.Y. 1971-72 (01.01.61
operation of aircraft)		 * * Taxable only in source country No separate
provision		 * For rate of tax and basis of
taxation refer to the DTAA provisions.
81 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. 
82 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.
83 Uzbekistan
223 ITR 60
349 ITR 171		 01.04.93
A.Y. 1994-95
01.04.2013
A.Y.2014-2015
 		 15 @
10@		 15 @
10@		 15 @
10@		 15 @
10@		 * Interest received from transaction approved by source country’s government will be exempt. In other cases normal provision of domestic tax law will apply.
84 Vietnam (Socialist Republic of Vietnam)
214 ITR137		 01.04.96
A.Y. 1997-98		 10 @ 10 @ 10 @  10 @  —
85 Zambia 146 ITR 233 A.Y. 1979-80 5 +  
15 + 		 10 + 10 + 10+ 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. Article 14 is titled ‘Management and Consultancy Fees’.

Notes:

1. In most cases the aforesaid rates of tax are on gross income but in some cases, tax is levied on the net income and, hence, each article of the respective agreement/s must be carefully analyzed and applied.

2. In the Country of Source, Royalties and Fees for Technical Services are taxed at following rates :

    i. 10% for Equipment Rental and for Services ancillary or subsidiary thereto.

    ii. for other cases.

      a. during 1st 5 years of Agreement 15% if Government or Specified Organization is payer 20% for other payers

      b. subsequent years, 15% in all cases

Income of Government/Government Organizations exempt from Taxation in Country of Source.

3. Pages referred to in citation are statute page Nos.

    @ — Beneficial Ownership required

    + — Beneficial Ownership may not be required

4. The rate of tax under the I.T. Act on royalty or fees for technical services receivable by a foreign company is as below:

  • For agreements made on or before 31st May, 1997 – 30%

  • For agreement made after 31st May, 1997 but before 1st June, 2005 – 20%

  • For agreement made on or after 1st June, 2005 – 10%

As per section 90(2), this rate may be adopted if it is lower than rate under DTAA.

5. Separate Limitation of Benefit Article to combat treaty shopping. Anti-avoidance provisions under domestic law will override treaty

6. Separate Limitation of Benefit Article to combat treaty shopping.

7. List of important Circulars on DTAA and Income of Non Residents in India

Circular / Notification No. & Date

Reference

Matter

No. 5 DT. 28-09-2004:

270 ITR (St.) 0031

 

Taxation of business process outsourcing units of Non-Residents in India. (Revised, withdrawing Circular No. 1 dated 02-01-2004 [265 ITR (St.) 0023])

No. 1 of 2004 dt. 02-01-2004:

265 ITR (St.) 0023

Taxation of business process outsourcing units of Non-Residents in India.

No. 1 of 2003 dt. 10-02-2003:

260 ITR (St.) 0245

Residential status under Indo-Mauritian Tax Treaty.

No. 10 dt. 09-10-2002:

258 ITR (St.) 9

Submission of No Objection Certificate in case of remittance to a non-resident

No 787 dt. 10-02-2000:

243 ITR (St.) 1

Taxation of income of artists, entertainers, sportsmen, etc. from international/local events.

No. 742 dt. 02-05-1996:
No. 765 dt. 15-04-1998:
No. 6/2001, dt. 5-3-2001

219 ITR (St.) 0049
231 ITR (St.) 0010
248 ITR (St.) 247

Taxation of foreign telecasting companies.

 

No. 740 dt. 17-04-1996:

219 ITR (St.) 0008

Taxability of remittance of interest by Branch of a foreign bank to its head office.

No. 734 dt. 24-01-1996:

217 ITR (St.) 0074

Rates of TDS under DTAA between India & U.A.E.

No. 728 dt. 30-10-1995:

216 ITR (St.) 0141A

 

Clarification regarding rate of TDS u/s. 195 for remittance, clarified that such rates shall be as provided in relevant
Finance Act or in DTAA whichever is more beneficial to the assessee.

No. 588 dt. 02-01-1991:

187 ITR (St.) 0063

Taxability of import of system software from Non-residents.

No. 333 dt. 02-04-1982:

137 ITR (St.) 0001B

A conflict in application of DTAA and provisions of Income-tax Act, 1961, clarified that beneficial provision shall apply.

No. 108 dt. 20-03-1973:

 

 

 

In relation to exchange of information between the countries for preventing evasion or avoidance of taxes and recovery thereof.

Nos. 90 and 91/ 2008 dt. 28-08-2008

 

304 ITR 63

 

Where treaty provides that any income of an Indian Resident "may be taxed" in the other country, such income shall be included in the total Income of such resident and relief shall be available as per DTAA.

CBDT Instruction No. 3/2004 dt. 19-03-2004

 

  

Suspension of collection of taxes during operation of Mutual Agreement Procedure in respect of India-UK DTAA.

Circular No. 7/2009 [F.No. 500/135/2007-FTD-I] clarification dated 22 October 2009

 

318 ITR 1

 

Circular No. 23 dated 23rd July, 1969 and Circular No. 163 dated 29th May, 1975 (both relating to taxability and accrual ofIncome of Non-resident in India) are withdrawn. Further, Circular No. 786 dated 7th February, 2000 (relating to of taxability of export commission in the hands of non-resident in India) is also withdrawn

Circular No. 7 dated 23rd October 2007 amended on 27th September 2011

 

338 ITR 1

 

The CBDT has laid down the procedure for refund of tax deducted at source under Section 195 of the Income-tax Act, 1961 to the person deducting tax at source from the payment to a non-resident. Refund will now be available to residents who have deducted tax at a higher rate, relying on a Tax Treaty, while a lower rate of tax deduction has been prescribed under domestic law.

Notification No. 93/2009 dated 9th December 2009

 

320 ITR 14

 

"The territory in which the taxation law administered by the Ministry of Finance in Taipei is applied" has been notified as ‘Specified Territory’ and "India-Taipei Association in Taipei" and "Taipei Economic and Cultural Centre in New Delhi" have been notified as ‘Specified Association’ under Section 90A of the Income-tax Act, 1961.

Notification No. 22/2010/F.No. 142/5/2010-SO(TPL) dated 8 April 2010

 

323 ITR 52

 

The following areas outside India have been notified as ‘Specified territory’ under Section 90 of the Income-tax Act, 1961:

(i) Bermuda;
(ii) British Virgin Islands;
(iii) Cayman Islands;
(iv) Gibraltar;
(v) Guernsey;
(vi) Isle of Man;
(vii) Jersey;
(viii) Netherlands Antilles;
(ix) Macau

Notification No. 25/2010 [F.No. 500/124/97-FTD-II], dated 20 April 2010

323 ITR 52

 

"Hong Kong Special Administrative Region of the People’s Republic of China" has been notified as ‘Specified territory’under Section 90 of the Income-tax Act, 1961
Notification No. 54/2012 [F.NO. 503/14/2012-FTD-I(PT),dated 17 December 2012
 		 350 ITR 4 Sint Maarten, a part of Kingdom of Netherlands,has been notified as ‘Specified territory’ under Section 90 of the Income-tax Act,1961

Notification No.03/2011-FTD-II [F.No. 500/96/97-FTD_II] dated 10 January 2011

330 ITR 6

 

Agreement among Governments of SAARC Member States for avoidance of double taxation and mutual administrative matters is effective from 1 April, 2011

Notification No.05/2011/F.No. 503/2/2009-FTD-I

330 ITR 83

Tax Information Exchange Agreement between India and Bermuda signed on 7 October 2010

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