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【Wealth Succession】INDIA: Withholding tax on dividends is restricted by ‘most favoured nation’ clause

The Delhi High Court has ruled that India's federal tax authority can only apply a 5 per cent withholding tax to dividend income paid by Indian subsidiaries to a Dutch parent. The tax rate cannot be higher than this because the ‘most favoured nation’ clause in the two countries’ tax treaty requires India to match the 5 per cent withholding tax rate it has agreed with some other countries, said the Court...

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