Poland NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Poland

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

When an Indian company pays you a dividend while you live in Poland, the company withholds tax at source before the money reaches you. India's default withholding on non-resident dividends is 20% under Section 393(2), the successor to Section 195. The India-Poland treaty position is more favourable, capping the rate at 10% for individual residents, a real saving over the 20% default (Article 11). To claim it you need Form 41, the successor to Form 10F, and a Tax Residency Certificate on file with the company or your broker.

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India-Poland key facts: dividend tax

Default non-resident TDS rate	20%
India-Poland DTAA treaty rate	10%
Your saving via the treaty	10%
Treaty article / basis	Article 11: flat 10% treaty cap after the 2013 protocol (was 15%)
Your TRC issuing authority	the Urzad Skarbowy (local tax office, National Revenue Administration)

Rates reflect India's domestic withholding under Section 393(2) (Section 195 until 31 March 2026) and the India-Poland 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 20% under Section 393(2) (Section 195 until 31 March 2026), plus surcharge and cess, and Section 115A taxes those dividends at 20% of the gross amount with no expenses allowed. A lower rate only ever comes from a treaty, and only where that treaty writes one for individuals: several of India's treaties reserve the reduced dividend rate for companies holding a large stake in the Indian payer, and some countries have no treaty with India at all, so portfolio investors there stay at the domestic rate.

Where a lower individual rate does apply, you claim it with Form 41 (formerly Form 10F) and a Tax Residency Certificate lodged with the company or broker, and any dividend withheld at the higher rate before your paperwork was on file is reclaimed through your Indian return. Where no lower rate applies, the 20% is generally your final Indian tax, so the questions worth asking are whether the payer withheld more than the correct rate and surcharge, and whether the country you live in gives you a credit for that Indian tax.

What changes because you live in Poland

Poland doesn't tax this as one pot. Each kind of Indian income drops into its own Polish box at its own flat rate, and the credit for the Indian tax only cancels the Polish tax sitting in that same box. Rent shows it worst: since 2023 private letting has to be a lump sum on gross rent, 8.5% up to 100,000 zloty and 12.5% above, filed on PIT-28 by 30 April, with nothing deductible for repairs, loan interest or depreciation. Interest, dividends and share gains each sit at 19% in a separate box. A flat sale is 19% too, but only if you sell within five years of the end of the year it was bought, and for an inherited flat that clock runs from the deceased's purchase. So the Polish figure your Indian tax is measured against is small, and anything above it stops dead. The ulga abolicyjna won't save you: since 2021 it's worth 1,360 zloty at most, and it never reached rent or investment income.

Frequently asked questions

Common questions from Poland NRIs

India's default is 20% under Section 393(2), but the India-Poland treaty caps it at 10% for individual residents, a saving of 10%. To get the lower rate you file Form 41 with a Tax Residency Certificate from the Urzad Skarbowy (local tax office, National Revenue Administration). Any excess withheld beforehand is reclaimed on your Indian return.

Yes. With Form 41 and a Tax Residency Certificate on file, the treaty rate of 10% applies instead of the 20% default, a 10% reduction. Dividends withheld at the higher rate before your paperwork was lodged are reclaimed when you file your Indian return.

Go further

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

NRI ITR for interest, rent and dividend income Poland NRI tax guide: every income type and the rates that apply

Dividend Tax sorted, by an Indian CA who works with Poland NRIs

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