How much tax will India withhold when your company pays a dividend, royalty or interest to a foreign shareholder – and how much lands after treaty relief? Pick the income, the recipient and the country below. The calculator compares the domestic rate (20% base + surcharge + cess) against the treaty rate for ten major jurisdictions and shows the net remittance either way. Buyback proceeds? The Finance Act 2026 taxes buybacks on or after 1 April 2026 as capital gains (12.5% long-term for non-promoter shareholders), not dividends – use the dividend option for buybacks only if they fell in the 1 October 2024 to 31 March 2026 window.
Repatriation tax calculator
What is being paid, and to whom?
The treaty rate table behind the tool
| Country | Dividend | Interest | Royalty / FTS |
|---|---|---|---|
| USA | 15% (10%+ voting corporate) / 25% | 15% (10% banks) | 15% (10% equipment); FTS on the make-available test |
| UK | 10% | 15% (10% banks) | 15% / 10% by category |
| Singapore | 10% (25%+ holding) / 15% | 15% (10% banks) | 10% |
| UAE | 10% | 12.5% (5% banks) | 10%; no FTS article |
| Mauritius | 5% (10%+ holding) / 15% | 7.5% | 15% |
| Netherlands | 10% (the 5% MFN claim died with the Nestlé ruling) | 10% | 10% |
| Germany / Japan | 10% | 10% | 10% |
| Australia | 15% | 15% | 10–15% by category |
| Canada | 15% (10%+ voting) / 25% | 15% | 10–20% by category |
Executing the remittance?
We prepare the TRC/Form 10F pack, the 15CA/15CB certificates and the FEMA leg – and confirm the treaty position before a rupee moves.
Talk to My Cloud AccountantFrequently asked questions
What surcharge applies on payments to non-residents?
For foreign companies: 2% above ₹1 crore and 5% above ₹10 crore of income. For individuals: 10% above ₹50 lakh and 15% above ₹1 crore – capped at 15% for dividends, but rising to 25%/37% above ₹2/5 crore for royalty and interest. Health and education cess of 4% applies on top in all cases.
Does cess apply on treaty rates?
No – treaty rates are ceilings on the total Indian tax, so no surcharge or cess is added to them. That is part of why treaty relief is valuable even where the headline gap looks small.
Which country gives the lowest dividend rate?
Mauritius at 5% for corporate shareholders holding 10%+ – subject to beneficial ownership, substance and the incoming principal-purpose test. Most major treaties (UK, UAE, Netherlands, Germany, Japan) sit at 10%.
How are buyback payments to foreign shareholders taxed?
As dividends – since 1 October 2024 the entire proceeds are dividend income with TDS at the same rates, and treaty dividend rates have been applied at source in practice. Use the dividend option in the calculator.
Rates per section 115A (section 207, ITA 2025), the Finance Act surcharge schedule and Indian treaty texts as summarised by the Income Tax Department’s DTAA table. Last reviewed: July 2026.