Canada – India Tax Treaty
The Canada-India tax treaty caps withholding on dividends at 25% for portfolio investors and 15% for qualifying direct investment, and interest at 15%. Royalties are taxed at a uniform 15% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 51 active treaties in Canada's network and one of 48 in India's. The general dividend rate of 25% is above the median in both countries' networks (Canada: 15%, India: 10%).
Verified data
CRA Part XIII Withholding Tax Rates (canada.ca) (Verified April 2026)
Withholding Rate Summary
Source: Canada Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Canada) |
|---|---|---|
| Dividends (general) Portfolio investors | 25% | 25% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 15%saves 10% | 25% |
| Interest Bank interest, bonds, loans | 15%saves 10% | 25% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 15% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Canada)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 25% applies to portfolio investors. A reduced rate of 15% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 25%.
Source: Canada Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 15% withholding under this treaty, compared to the 25% statutory rate. This represents a 10% reduction from the statutory rate.
Source: Canada Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 15% to 15%.
Source: Canada Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Canada Treaty Reference
Comparative Context
🇨🇦Canada's Network
Among Canada's 51 active treaty partners, the 25% general dividend rate ranks 51th (median: 15%).
| Partner | Rate |
|---|---|
| South Africa | 15% |
| Turkey | 20% |
| Brazil | 25% |
| India (this treaty) | 25% |
🇮🇳India's Network
Among India's 48 active treaty partners, the 25% general dividend rate ranks 47th (median: 10%).
| Partner | Rate |
|---|---|
| Turkey | 15% |
| Philippines | 20% |
| Thailand | 20% |
| Canada (this treaty) | 25% |
| United States | 25% |