What tax is withheld on Indian dividends for an NRI in Vietnam?

India's default is 20% under Section 195, but the India-Vietnam treaty caps it at 10% for individual residents — a saving of 10%. To get the lower rate you file Form 10F with a Tax Residency Certificate from General Department of Taxation (provincial Department of Taxation); any excess withheld beforehand is reclaimed on your Indian return.

Can I reduce the tax withheld on my Indian dividends?

Yes. With Form 10F 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.

Vietnam NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Vietnam

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

When an Indian company pays you a dividend while you live in Vietnam, 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-Vietnam 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.

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India-Vietnam key facts: dividend tax

Default Section 195 rate	20%
India-Vietnam DTAA treaty rate	10%
Your saving via the treaty	10%
Treaty article / basis	Article 10: flat 10% treaty cap, no shareholding sub-rate
Your TRC issuing authority	General Department of Taxation (provincial Department of Taxation)

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

Vietnamese residents are taxed on worldwide income at rates up to 35%, with a foreign tax credit for the Indian tax already paid. One quirk of this treaty catches accountants out: capital gains sit in Article 14, not the usual Article 13 (which is Technical Fees here), so a share sale referenced to the wrong article can misstate India's taxing right. The 2026 personal-income-tax reform changes only the Vietnamese-side brackets, not the Indian treaty position.

Frequently asked questions

Common questions from Vietnam NRIs

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NRI ITR for interest, rent and dividend income Vietnam NRI tax guide — all income types & DTAA rates

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