What is specific to UK companies
The UK treaty sets 10% on most dividends, 15% on interest (10% for banks) and 15% on royalties and technical fees. Its 90-day services test is shorter than in many treaties, so long UK visits to India need tracking.
Treaty rates
| Income | Indian tax under the treaty |
|---|---|
| Dividends | 10% (15% for certain property vehicles) |
| Interest | 15% (10% for banks) |
| Royalties | 15% (10% for equipment) |
| Technical service fees | Technical fees: 15% (10% for equipment-related services). |
| Gains on Indian shares | Left largely to domestic law, so India can tax the gain. |
Permanent establishment
The treaty has a 90-day services test, much shorter than many treaties.
Our services
How SU and Company helps
We plan and document how money moves back to the parent, at the right treaty rate.
- Dividend, royalty, fee and interest planning
- Treaty withholding and remittance paperwork
- Board and FEMA steps for dividends and buybacks
- Indian figures and certificates for the parent's tax relief
Questions
Does the treaty always beat Indian domestic rates?
The lower of the treaty and domestic rate applies, provided the recipient is the beneficial owner and holds a valid residency certificate.
General information as at 5 November 2026, not advice for a particular case. Indian and UK rules change often; confirm the current position before acting. UK law points should be confirmed with a UK adviser.