Tax on Dividends From Indian Solar Companies, by Country
Last updated 18 October 2026 · By Pradeep Kumar, India Solar
In short: India withholds 20% (plus surcharge and cess) on dividends paid to non-residents, or the lower rate in a tax treaty: 5% for Saudi Arabia, 10% for the UAE, Japan, the UK and Germany, 10–15% for Singapore and 15% for US companies holding 10% or more. Treaty rates need a tax residency certificate and Form 10F.
Dividend withholding rates
| Investor's country | Treaty rate on dividends | Notes |
|---|---|---|
| Saudi Arabia | 5% | |
| United Arab Emirates | 10% | India–UAE investment treaty in force since 2024 |
| Japan | 10% | |
| Singapore | 10% / 15% | 10% for holdings of 25% or more |
| Mauritius | 5% / 15% | 5% for holdings of 10% or more |
| United Kingdom | 10% | 15% for certain property-income vehicles |
| Germany, Netherlands | 10% | |
| France | 10% | A 2026 protocol (5% / 15%) is signed but not yet in force |
| Switzerland | 10% | |
| United States | 15% / 20% | 15% for companies holding 10% or more; otherwise India's 20% domestic rate, lower than the treaty's 25% |
| South Africa, Kenya | 10% | |
| Nigeria | 20% | No tax treaty with India |
The Indian company itself pays corporate tax first, about 25.17% under the concessional regime. Dividends are paid from what is left.
Interest and capital gains
- Interest on foreign loans taken after 1 July 2023: 20% plus surcharge and cess, or the treaty rate (often 10–15%). The old 5% concessional rate applies only to earlier loans.
- Selling the plant company's unlisted shares after more than 24 months: 12.5% long-term capital gains tax in India, plus surcharge and cess.
- Mauritius and Singapore exemptions on share gains apply only to shares bought before 1 April 2017.
- After the Supreme Court's Tiger Global ruling (January 2026), a tax residency certificate alone may not secure treaty benefits; holding companies need real substance.
Paperwork for treaty rates
- Tax residency certificate from your home tax authority.
- Form 10F, filed online on the Indian income-tax portal.
- Indian PAN, or the alternative documents that avoid a higher withholding rate.
- A beneficial-ownership declaration and a no-permanent-establishment declaration.
India's Income-tax Act 2025 replaced the 1961 Act from 1 April 2026 and renumbered most sections; the rates above are unchanged by the renumbering. Your home country may tax the dividend again and give credit for Indian tax: see the country guides.
Sources
General information only, not investment, legal or tax advice. Rules change and depend on your circumstances; take advice before you act. India Solar does not offer securities or guarantee returns.