India-Germany DTAA
Treaty signed: June 19, 1995 | Effective from: December 15, 1996
● Live · Rates served from /api/tax-rules/dtaa/DE
Dividends
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Interest
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Royalties
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Capital Gains
Fees for Technical Services
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Key Treaty Provisions
- Comprehensive treaty covering business profits, dividends, interest, royalties, FTS, capital gains, employment income
- Permanent Establishment: German companies are taxable in India only on profits attributable to an Indian PE
- MLI has been ratified by both India and Germany - Principal Purpose Test applies
- Dividends: 10% rate applies (standard Indian DDT is abolished; dividend now taxable in hands of recipient)
- Construction PE: work site that lasts more than 6 months creates a PE
Frequently Asked Questions
What is the TDS rate on technical service fees paid by an Indian company to a German firm?▾
Under the India-Germany DTAA, Fees for Technical Services (FTS) are taxable at 10% in India. The German company must provide TRC + Form 10F to claim the 10% rate instead of the standard 20%.
Does a German company need to file an Indian tax return if it has no PE?▾
If the German company has no PE in India and earns only passive income (interest, dividends, royalties), it typically only needs to ensure proper TDS has been deducted at the DTAA rates. However, if it files Form 15CA/CB for remittances, a return may be required in some cases. Consult a tax advisor for specific facts.
How long can a German employee work in India before Indian tax applies?▾
Under the Salaries article, a German employee becomes taxable in India from the first day of work in India if they are paid by or on behalf of an Indian resident employer, or if the salary is borne by an Indian PE of the German company. The 183-day exemption only applies to short visits where the employer is not Indian-resident and no Indian PE bears the cost.
Browse all articles
20 articlesArticle 1 of the India-Germany DTAA governs persons covered.…
Article 4 of the India-Germany DTAA governs resident.…
Article 5 of the India-Germany DTAA governs permanent establishment.…
Article 7 of the India-Germany DTAA governs business profits.…
Article 8 of the India-Germany DTAA governs shipping, inland waterways, and air transport.…
Article 9 of the India-Germany DTAA governs associated enterprises.…
Dividends paid by a company resident in one State to a resident of the other State may be taxed in the recipie…
Interest arising in one State and paid to a resident of the other may be taxed in the recipient's State, with …
Royalties paid to a resident of the other State may be taxed in the recipient's State; the source State retain…
FTS - payments for managerial, technical, or consultancy services - are taxed at the treaty rate where a speci…
Article 13 allocates taxing rights over capital gains between India and Germany.…
Article 14 of the India-Germany DTAA governs independent personal services.…
Article 15 sets the taxing rights for salaries earned by an employee of one State who works in the other.…
Article 17 of the India-Germany DTAA governs artistes and sportspersons.…
Article 18 of the India-Germany DTAA governs pensions.…
Article 19 of the India-Germany DTAA governs government service.…
Article 23 sets out the mechanism by which double taxation is eliminated - typically through a foreign tax cre…
MAP allows the competent authorities of India and Germany to resolve disputes - particularly transfer pricing …
Allows the competent authorities to exchange information necessary to apply the treaty or domestic tax laws.…
Treaty benefits are denied where the principal purpose of the transaction was to obtain them.…
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