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Double Taxation Agreements with Various Countries
Access 78 India DTAA templates by country—treaty texts on dividends, interest, royalties, FTS, capital gains, PE, residency, and relief from double taxation.
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Quick Overview
All templates are provided for reference and should be reviewed by legal professionals before use.
Frequently Asked Questions
Common questions about Double Taxation Agreements with Various Countries legal templates
What is a Double Taxation Avoidance Agreement (DTAA)?
A DTAA is a bilateral tax treaty between India and another country that allocates taxing rights and provides methods to avoid the same income being taxed twice.
How can a taxpayer claim DTAA benefits in India?
Provide a valid Tax Residency Certificate (TRC), Form 10F, and prescribed self-declaration to the payer or during assessment, and apply the relevant treaty article for reduced withholding or exemption.
Which types of income are typically covered by DTAAs?
Common categories include dividends, interest, royalties, fees for technical services (FTS), business profits, capital gains, employment income, and independent personal services.
What is a Permanent Establishment (PE) under DTAA?
PE is a fixed place of business or dependent agent through which a non-resident’s business is wholly or partly carried on in the source country, triggering source taxation of business profits.
How do tie-breaker rules determine residency under DTAA?
If dual residency arises, tie-breakers consider permanent home, centre of vital interests, habitual abode, nationality, and mutual agreement procedures to resolve residency.
Do DTAAs override the Income-tax Act, 1961?
A taxpayer can apply the treaty or domestic law, whichever is more beneficial; however, anti-abuse rules and specific conditions in the Act or treaty still apply.
What is the role of the Multilateral Instrument (MLI)?
MLI modifies covered tax treaties to implement BEPS measures like Principal Purpose Test (PPT), PE changes, and dispute resolution, impacting how certain India treaties operate.
How are withholding tax rates determined under a DTAA?
Rates are specified in treaty articles for dividends, interest, royalties, and FTS; apply the lower of treaty rate or domestic rate after furnishing TRC and compliance documents.
How is relief granted for double taxation?
Treaties provide exemption or foreign tax credit methods; India generally allows credit for eligible foreign taxes against Indian tax on the same income, subject to rules.
Are capital gains covered similarly across all India treaties?
No, capital gains provisions vary by country; some allocate taxing rights to the source state for shares or immovable property-rich entities, others to the residence state.