India-Netherlands DTAA
Treaty signed: October 22, 1988 | Effective from: December 28, 1989
● Live · Rates served from /api/tax-rules/dtaa/NL
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
- Netherlands is a popular European holding company jurisdiction for India investments
- Both India and Netherlands have ratified MLI - PPT now applies, countering pure treaty shopping
- Dividend rate: 10% uniform - attractive for Dutch BV holding companies owning Indian subsidiaries
- Interest: 10% - applicable to intercompany loans from Dutch parent to Indian subsidiary
- The Netherlands does not impose withholding on royalties paid out - making Netherlands-India-royalty flows often one-directional
Frequently Asked Questions
Does a Dutch BV holding company pay 10% withholding on Indian dividends?▾
Yes, under the India-Netherlands DTAA, dividends paid by an Indian company to a Dutch BV are subject to 10% withholding in India. The Dutch BV must provide TRC and Form 10F. The Dutch participation exemption may then exempt the dividend from corporate tax in the Netherlands.
Can treaty shopping through Netherlands BV still work for India investments?▾
Post-MLI, India and Netherlands both apply the Principal Purpose Test. A Dutch BV that has no real economic activity or substance in the Netherlands - created solely to route investment through - may be denied DTAA benefits by Indian tax authorities. Substance, board meetings in Netherlands, and genuine business activity are key.
What is the withholding rate on software licensing fees from India to a Netherlands company?▾
Software royalties are taxable at 10% under the India-Netherlands DTAA. The Dutch company must furnish TRC from the Belastingdienst (Dutch tax authority) and Form 10F to the Indian payer.
Browse all articles
20 articlesArticle 1 of the India-Netherlands DTAA governs persons covered.…
Article 4 of the India-Netherlands DTAA governs resident.…
Article 5 of the India-Netherlands DTAA governs permanent establishment.…
Article 7 of the India-Netherlands DTAA governs business profits.…
Article 8 of the India-Netherlands DTAA governs shipping, inland waterways, and air transport.…
Article 9 of the India-Netherlands 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 Netherlands.…
Article 14 of the India-Netherlands 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-Netherlands DTAA governs artistes and sportspersons.…
Article 18 of the India-Netherlands DTAA governs pensions.…
Article 19 of the India-Netherlands 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 Netherlands to resolve disputes - particularly transfer pric…
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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