What tax is withheld on Indian dividends for an NRI in Belgium?

India's default is 20% under Section 195, but the India-Belgium treaty caps it at 15% for individual residents — a saving of 5%. To get the lower rate you file Form 10F with a Tax Residency Certificate from FPS Finance / SPF Finances; any excess withheld beforehand is reclaimed on your Indian return.

Can I reduce the tax withheld on my Indian dividends?

Yes. With Form 10F and a Tax Residency Certificate on file, the treaty rate of 15% applies instead of the 20% default — a 5% reduction. Dividends withheld at the higher rate before your paperwork was lodged are reclaimed when you file your Indian return.

Belgium NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Belgium

Dividends from Indian companies are withheld at the non-resident rate before they reach you in Belgium — here's the treaty position and how to reclaim any excess.

When an Indian company pays you a dividend while you live in Belgium, the company withholds tax at source before the money reaches you. India's default withholding on non-resident dividends is 20% under Section 195. The India-Belgium treaty position on dividends is more favourable — it caps the rate at 15% for individual residents, a real saving over the 20% default (Article 10: flat 15% treaty cap on Indian-source dividends). To claim it you need Form 10F and a Tax Residency Certificate on file with the company or your broker.

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India-Belgium key facts: dividend tax

Default Section 195 rate	20%
India-Belgium DTAA treaty rate	15%
Your saving via the treaty	5%
Treaty article / basis	Article 10: flat 15% treaty cap on Indian-source dividends
Your TRC issuing authority	FPS Finance / SPF Finances

Rates reflect India's domestic Section 195 withholding and the India-Belgium treaty. Surcharge and cess apply on top where relevant.

How it works on the India side

Since the 2020 shift back to classical dividend taxation, dividends from Indian companies are taxable in the shareholder's hands and the company deducts TDS before paying. For a non-resident the default is Section 195 at 20% (plus surcharge and cess). Whether a treaty rate is available depends on the specific treaty — for many countries the lower dividend rate is written only for companies holding a large stake in the Indian payer, which means individual portfolio investors stay at the domestic rate.

Where a lower individual rate does apply, you claim it with Form 10F and a Tax Residency Certificate lodged with the company or broker, and any quarter withheld at the higher rate before your paperwork was on file is reclaimed through your Indian return. Where no lower rate applies, the dividend still goes on your return, and the real relief sits on your home-country side as a foreign tax credit for the Indian tax already paid.

What changes because you live in Belgium

Belgian residents are taxed on worldwide income, with a communal surcharge of up to 9% stacked on federal tax that reaches 50%, and a foreign tax credit for the Indian tax paid. The point that decides an Antwerp diamond family's Indian tax is the size of the stake: India taxes gains on a holding of at least 10%, while a portfolio holding below 10% is taxable only in Belgium. Map the holding before any Indian share sale, because the treaty article that applies turns on that 10% line.

Frequently asked questions

Common questions from Belgian NRIs

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Read the full guide, or see your country's complete picture

NRI ITR for interest, rent and dividend income Belgium NRI tax guide — all income types & DTAA rates

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