For cross-border payments with India
India Tax Treaty (DTAA) Rates — Find Yours in Seconds
Paying or receiving dividends, interest, royalties or service fees across the India border? Pick the country and payment type to see the treaty rate, how much tax it saves against India's 20% domestic rate, and what you need to claim it.
- ✓ 50 countries including USA, UK, UAE, Singapore
- ✓ Updated for the Income-tax Act, 2025 (Form 41)
- ✓ Recent protocols with Oman, Qatar and Spain included
India DTAA Withholding Rate Finder
50 countries · treaty vs Indian domestic rate · updates instantly.
Treaty rate
10%
Tax ₹1,00,000
Without treaty
20.8%+
Tax ₹2,08,000
Only 'fees for included services' that make technical knowledge available are taxable. 10% for use of industrial, commercial or scientific equipment (and services ancillary to it); 15% otherwise
Claiming the treaty saves about ₹1,08,000 of tax on this payment.
India – United States: all treaty rates
| Dividends | 15% / 25% |
| Interest | 10% / 15% |
| Royalties (software, IP, licences) | 10% / 15% |
| Fees for technical / consulting services | 10% / 15% |
To claim the treaty rate in India
- ✓ Tax Residency Certificate (TRC) from the United States tax authority
- ✓ Form 41 filed online (replaced Form 10F from 1 April 2026)
- ✓ PAN, or the prescribed alternative details, to avoid a higher deduction
- ✓ Declaration that the recipient is the beneficial owner and has no PE in India
Rates are the maximum India may deduct on payments to a resident of United States; the lower of treaty and domestic rate applies. Domestic rate is 20% plus 4% cess (and surcharge on larger payments). Source: treaty rate charts reviewed May 2026. Not a final opinion.
Who This Is For
- Foreign companies receiving royalties or service fees from Indian clients
- Indian companies paying overseas vendors, licensors or lenders
- Foreign investors receiving dividends from Indian companies
- NRIs and their advisers checking tax on Indian income
The Rules in Plain Words
As they stand in October 2026.
Lower of treaty or domestic rate
India deducts tax on payments to non-residents under Section 393(2) of the Income-tax Act, 2025 (old Section 195). If a tax treaty gives a lower rate, the payee can choose it — the treaty rate applies without surcharge or cess.
Domestic rate: 20% plus
Without a treaty, dividends, interest, royalties and fees for technical services paid to a non-resident are taxed at 20%, plus 4% cess and surcharge on larger amounts — 20.8% or more in practice.
TRC and Form 41 are compulsory
To claim treaty relief (Section 159, old Section 90) the payee must give a Tax Residency Certificate from its country and file Form 41 online — the replacement for Form 10F from 1 April 2026.
PAN or alternative details
A non-resident without a PAN faces a higher deduction unless it provides the prescribed alternative details — name, address, TRC and tax identification number in its country.
'Make available' clauses
Treaties with the USA, UK and some others tax service fees in India only if the service makes technical knowledge available to the payer. Many routine services fall outside — worth checking before tax is deducted.
Anti-abuse rules
Treaty benefits can be denied if the main purpose of a structure is to get them (the MLI principal purpose test), or if the recipient is not the beneficial owner of the income.
India DTAA Rates — Full Table
Where two rates are shown, the lower one applies only if the condition in the finder is met. "No article" = no separate clause in the treaty.
| Country | Dividend | Interest | Royalty | Technical fees |
|---|---|---|---|---|
| Australia | 15% | 15% | 10% / 15% | 10% / 15% |
| Austria | 10% | 10% | 10% | 10% |
| Bangladesh | 10% / 15% | 10% | 10% | No article |
| Belgium | 15% | 10% / 15% | 10% | 10% |
| Brazil | 15% | 15% | 15% / 25% | No article |
| Canada | 15% / 25% | 15% | 10% / 15% | 10% / 15% |
| China | 10% | 10% | 10% | 10% |
| Cyprus | 10% | 10% | 10% | 10% |
| Czech Republic | 10% | 10% | 10% | 10% |
| Denmark | 15% / 25% | 10% / 15% | 20% | 20% |
| Finland | 10% | 10% | 10% | 10% |
| France | 10% | 10% / 15% | 10% | 10% |
| Germany | 10% | 10% | 10% | 10% |
| Hong Kong | 5% | 10% | 10% | 10% |
| Hungary | 10% | 10% | 10% | 10% |
| Ireland | 10% | 10% | 10% | 10% |
| Israel | 10% | 10% | 10% | 10% |
| Italy | 15% / 25% | 15% | 20% | 20% |
| Japan | 10% | 10% | 10% | 10% |
| Kenya | 10% | 10% | 10% | 10% |
| Kuwait | 10% | 10% | 10% | 10% |
| Luxembourg | 10% | 10% | 10% | 10% |
| Malaysia | 5% | 10% | 10% | 10% |
| Malta | 10% | 10% | 10% | 10% |
| Mauritius | 5% / 15% | 7.5% | 15% | 10% |
| Mexico | 10% | 10% | 10% | 10% |
| Nepal | 5% / 10% | 10% | 15% | No article |
| Netherlands | 10% | 10% | 10% | 10% |
| New Zealand | 15% | 10% | 10% | 10% |
| Norway | 10% | 10% | 10% | 10% |
| Oman | 10% / 12.5% | 10% | 10% | 10% |
| Poland | 10% | 10% | 15% | 15% |
| Portugal | 10% / 15% | 10% | 10% | 10% |
| Qatar | 5% / 10% | 10% | 10% | 10% |
| Russia | 10% | 10% | 10% | 10% |
| Saudi Arabia | 5% | 10% | 10% | No article |
| Singapore | 10% / 15% | 10% / 15% | 10% | 10% |
| South Africa | 10% | 10% | 10% | 10% |
| South Korea | 15% | 10% | 10% | 10% |
| Spain | 15% | 15% | 10% | 10% |
| Sri Lanka | 7.5% | 10% | 10% | 10% |
| Sweden | 10% | 10% | 10% | 10% |
| Switzerland | 10% | 10% | 10% | 10% |
| Taiwan | 12.5% | 10% | 10% | 10% |
| Thailand | 10% | 10% | 10% | No article |
| Turkey | 15% | 10% / 15% | 15% | 15% |
| United Arab Emirates | 10% | 5% / 12.5% | 10% | No article |
| United Kingdom | 10% / 15% | 10% / 15% | 10% / 15% | 10% / 15% |
| United States | 15% / 25% | 10% / 15% | 10% / 15% | 10% / 15% |
| Vietnam | 10% | 10% | 10% | 10% |
| No treaty (domestic) | 20% | 20% | 20% | 20% |
Domestic rates are before surcharge and 4% cess; treaty rates are applied without them. Last reviewed October 2026.
Frequently Asked Questions
What is the TDS rate on payments to a US company for services?
Under the India-US treaty, fees for included services are taxed at 15% (10% where linked to equipment rental), and only if the service makes technical knowledge available. Otherwise they may not be taxable in India at all if the US company has no permanent establishment here.
Does India deduct tax on payments to UAE companies for services?
The India-UAE treaty has no separate article for fees for technical services, so such fees are usually taxable in India only if the UAE company has a permanent establishment in India. Royalties are taxed at 10%.
Is surcharge and cess added to the DTAA rate?
No. When the treaty rate is applied, surcharge and cess are not added. They apply only when tax is deducted at the domestic rate.
What replaced Form 10F?
Under the Income-tax Act, 2025 and the Income-tax Rules, 2026, Form 41 replaced Form 10F from 1 April 2026. It is filed online along with the Tax Residency Certificate.
Do I also need Form 145 and 146 (old 15CA / 15CB) for the remittance?
Often yes. Remittances to non-residents generally need Form 145, and above ₹5 lakh a CA certificate in Form 146, unless the payment is in an exempt category. Our fund repatriation guide explains which part applies.
Related tools: Form 145 / 146 guide · Lower TDS certificate checklist · India GST checker for online businesses
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