Saudi Arabia NRIs · Dividend Tax
Dividend tax on Indian shares for NRIs in Saudi Arabia
Dividends from Indian companies are withheld at the non-resident rate before they reach you in Saudi Arabia — here's the treaty position and how to reclaim any excess.
India-Saudi Arabia key facts: dividend tax
| Default Section 195 rate | 20% |
| India-Saudi Arabia DTAA treaty rate | 5% |
| Your saving via the treaty | 15% |
| Treaty article / basis | Article 10 — flat 5% on Indian dividends to Saudi residents (no individual-vs-corporate sub-rate) |
| Your TRC issuing authority | ZATCA (Zakat, Tax and Customs Authority) |
Rates reflect India's domestic Section 195 withholding and the India-Saudi Arabia 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 Saudi Arabia
Saudi Arabia levies no personal income tax on individuals — resident or non-resident — and no inheritance or gift tax, so there is no second layer on this Indian income and no foreign tax credit to chase: the India-side tax shown here is the whole story, and every point you cut the Indian withholding by is pure saving. The one trap to watch is Indian, not Saudi — if your Indian income (other than foreign-source) crosses ₹15 lakh in a year, India's Section 6(1A) deemed-resident rule can pull a Gulf NRI back into the Indian net, so confirm that line before assuming zero Indian exposure.
Frequently asked questions
Common questions from Saudi NRIs
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Dividend Tax sorted, by an Indian CA who works with Saudi NRIs
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