Skip to content
Got a notice? Emergency response →

Uganda NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Uganda

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

When an Indian company pays you a dividend while you live in Uganda, 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-Uganda 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: flat 10% treaty cap, 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-Uganda key facts: dividend tax

Default Section 195 rate20%
India-Uganda DTAA treaty rate10%
Your saving via the treaty10%
Treaty article / basisArticle 10: flat 10% treaty cap, no shareholding sub-rate
Your TRC issuing authorityUganda Revenue Authority (URA)

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

Ugandan residents are taxed on worldwide income at rates up to 40%, with a foreign tax credit for the Indian tax paid. The certificate you need for the treaty rate is the Uganda Revenue Authority tax residency certificate, not the far more expensive immigration residence permit, which is a common and costly mix-up. Other income not covered by a specific treaty article is taxable only in Uganda, so India cannot reach it.

Frequently asked questions

Common questions from Uganda NRIs

Go further

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

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

Tell us your situation and a practising Chartered Accountant will confirm the rate that applies, the paperwork you need, and what you can reclaim — on a free call, no obligation.

No card, no obligation. All filing work is handled by ICAI-registered practising Chartered Accountants.