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Ireland NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Ireland

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

When an Indian company pays you a dividend while you live in Ireland, 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-Ireland treaty position on dividends is more favourable — it caps the rate at 10% for individual residents, a real saving over the 20% default (Article 10 — 10% flat rate on Indian-source dividends to resident beneficial owners (no shareholding sub-rate)). To claim it you need Form 10F and a Tax Residency Certificate on file with the company or your broker.

India-Ireland key facts: dividend tax

Default Section 195 rate20%
India-Ireland DTAA treaty rate10%
Your saving via the treaty10%
Treaty article / basisArticle 10 — 10% flat rate on Indian-source dividends to resident beneficial owners (no shareholding sub-rate)
Your TRC issuing authorityRevenue Commissioners

Rates reflect India's domestic Section 195 withholding and the India-Ireland 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 Ireland

Ireland taxes worldwide income only for residents who are also Irish-domiciled. Most NRIs are non-domiciled, and they can use the remittance basis — Indian income and gains are taxed in Ireland only to the extent they are actually brought into (remitted to) Ireland. Indian income left sitting in your NRO or NRE account stays outside the Irish net until you remit it, and Ireland (unlike the UK from April 2025) currently charges nothing for using this basis. Get the domicile-versus-residence line right, because once you become domiciled the full Indian portfolio becomes reportable.

Frequently asked questions

Common questions from Irish NRIs

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