Thailand NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Thailand

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

When an Indian company pays you a dividend while you live in Thailand, 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-Thailand treaty position is more favourable, capping the rate at 10% for individual residents, a real saving over the 20% default (Article 10). 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-Thailand key facts: dividend tax

Default non-resident TDS rate	20%
India-Thailand DTAA treaty rate	10%
Your saving via the treaty	10%
Treaty article / basis	Article 10: 10% on Indian-listed dividends to Thai residents
Your TRC issuing authority	the Revenue Department

Rates reflect India's domestic withholding under Section 393(2) (Section 195 until 31 March 2026) and the India-Thailand 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 Thailand

Two things have to be true before Thailand taxes this Indian income: you were there 180 days or more in the calendar year you earned it, and you then bring the money in. Leave it sitting in India and it stays outside the Thai net. Anything earned before 1 January 2024, or in a year you were under 180 days, is out for good (Revenue Department orders Por. 161/2566 and Por. 162/2566). The catch is that it cuts both ways. Your credit for the Indian tax exists only because of the treaty, and it is capped at the Thai tax on that same income, so anything above the cap is wasted. If you never remit, or you hold an LTR visa as a Wealthy Global Citizen, Wealthy Pensioner or Work-from-Thailand Professional whose remitted foreign income is exempt under Royal Decree No. 743, there is no Thai bill to credit it against at all, so over-withheld Indian tax is money you can only get back in India.

Frequently asked questions

Common questions from Thailand NRIs

India's default is 20% under Section 393(2), but the India-Thailand 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 Revenue Department. 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

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

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