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DTAA


DTAA stands for Double Taxation Avoidance Agreement, it is a tax treaty signed between two or more countries to help the tax payers to avoid double taxation on the same income. A DTAA is applicable in those cases where a person is a resident of one nation but earns income in another.
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Overview

DTAA is useful for Non-Resident Indians, Usually, NRI live in other countries than India but earns income in India through business or property rents, etc. in those cases it is most likely that income earned in India would attract taxes in India as well as in that country of the NRI resident. At the when the income earned in India is transferred to the resident country. This means that they will have to pay taxes twice on the same income. As a measure to avoid this double taxation DTAA (Double Taxation Avoidance Agreement) was amended.

Having DTAA does not mean that the Non-Residents can completely avoid taxes, but it means that non residents can avoid paying higher taxes in both countries. India has DTAA agreement signed with many counties and Income earned by NRI would be taxable according to the tax rates set in the Double Tax Avoidance Agreement with that country.

List of countries that India has Signed DTAA with are listed below

SI No. Country TDS Rate SI No. Country TDS Rate SI No. Country TDS Rate

1

Armenia

10%

2

Australia

15%

3

Austria

10%

4

Bangladesh

10%

5

Belarus

10%

6

Belgium

15%

7

Botswana

10%

8

Brazil

15%

9

Bulgaria

15%

10

Canada

15%

11

China

15%

12

Cyprus

10%

13

Czech Republic

10%

14

Denmark

15%

15

Egypt

10%

16

Estonia

10%

17

Ethiopia

10%

18

Finland

10%

19

France

10%

20

Georgia

10%

21

Germany

10%

22

Greece

As per agreement

23

Hashemite kingdom of Jordan

10%

24

Hungary

10%

25

Iceland

10%

26

Indonesia

10%

27

Ireland

10%

28

Israel

10%

29

Italy

15%

30

Japan

10%

31

Kazakhstan

10%

32

Kenya

15%

33

South Korea

15%

34

Kuwait

10%

35

Kyrgyz Republic

10%

36

Libya

As per agreement

37

Lithuania

10%

38

Luxembourg

10%

39

Malaysia

10%

40

Malta

10%

41

Mauritius

7.50-10%

42

Mongolia

15%

43

Montenegro

10%

44

Morocco

10%

45

Mozambique

10%

46

Myanmar

10%

47

Namibia

10%

48

Nepal

15%

49

Netherlands

10%

50

New Zealand

10%

51

Norway

15%

52

Oman

10%

53

Philippines

15%

54

Poland

15%

55

Portuguese Republic

10%

56

Qatar

10%

57

Romania

15%

58

Russia

10%

59

Saudi Arabia

10%

60

Serbia

10%

61

Singapore

15%

62

Slovenia

10%

63

South Africa

10%

64

Spain

15%

65

Sri Lanka

10%

66

Sudan

10%

67

Sweden

10%

68

Swiss Confederation

10%

69

Syrian Arab Republic

7.50%

70

Tajikistan

10%

71

Tanzania

12.50%

72

Thailand

25%

73

Trinidad and Tobago

10%

74

Turkey

15%

75

Turkmenistan

10%

76

UAE

12.50%

77

UAR (Egypt)

10%

78

Uganda

10%

79

UK

15%

80

Ukraine

10%

81

United Mexican States

10%

82

USA

15%

83

Uzbekistan

15%

84

Vietnam

10%

85

Zambia

10%




Benefits of DTAA

Double Tax Avoidance

Having DTAA treaty signed between two countries benefits the non-residents in avoidance of double taxation for income earned in the home country of the non-resident.

Attractive Investment Hub

The purpose behind Double Tax Avoidance Agreement is to make a country appear an attractive Investment Destination by avoiding double taxation on income earned. This is done through providing exemptions on income tax or offering credit to the extent taxes which have been paid abroad.

Trust

Having Double Tax Avoidance Agreement signed provide both formal and informal trust between countries, which translates into diplomatic benefits and cordial relationships.

Checklist/Requirements

Documents Requirement to avail the benefits under DTAA

  1. Self-declaration cum indemnity format
  2. Self-attested copy of PAN card
  3. Self-attested copy of passport and visa
  4. PIO proof (if applicable) copy
  5. Tax Residency Certificate (TRC) copy

Process of DTAA

Step 1: Provide all the required documents and information

Step 2: Filings the form with the department

Step 3: Uploading all the required documents

Step 4: Sharing the deliverables

Key Deliverables

  1. Copy of filed form 10
  2. Acknowledgement copy

DTAA

Why Choose Us

  Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

  Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

  One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.

  Cost-Effective

We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.


Frequently Asked Questions


What are the income types covered in DTAA?
The Non-residents don’t have to pay double tax on the income earned from the following sources:
  1. Services provided in India
  2. Salary received in India
  3. House property located in India
  4. Capital gains on transfer of assets in India
  5. Fixed deposits in India
  6. Savings bank accounts in India
There are two ways to claim the benefits under DTAA
  1. Tax Credit Method: In this method an Individual has to take all his income into consideration including foreign and home country and file the taxes as per the home country and avail credit while paying taxes.
  2. Exemption Method: In this method an Individual does not have to consider the home country income. He/she have to pay taxes just on the income they have earned in the foreign country. In this method he/she can choose to pay taxes in any one of the countries.
Yes, the DTAA tax rates are updated every year, so an NRI must submit all the documents at the start of every Financial year.
The following type of taxes are covered under DTAA
  1. Income tax
  2. Wealth tax is also covered Under certain treaties
  3. Taxes that are substantially similar are covered (e.g., surcharge and education cess)
  4. Taxes that are levied in substitution of existing taxes are covered