India – Philippines Tax Treaty
The India-Philippines tax treaty caps withholding on dividends at 20% 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 48 active treaties in India's network and one of 28 in Philippines's. The general dividend rate of 20% is above the median in both countries' networks (India: 10%, Philippines: 15%).
Verified data
BIR Tax Treaty Network (bir.gov.ph) (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Philippines Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Philippines) |
|---|---|---|
| Dividends (general) Portfolio investors | 20%saves 5% | 25% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 15%saves 10% | 25% |
| Interest Bank interest, bonds, loans | 15%saves 5% | 20% |
| 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 (Philippines)” 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 20% 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: Philippines Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 15% withholding under this treaty, compared to the 20% statutory rate. This represents a 5% reduction from the statutory rate.
Source: Philippines 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: Philippines 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: Philippines Treaty Reference
Comparative Context
🇮🇳India's Network
Among India's 48 active treaty partners, the 20% general dividend rate ranks 45th (median: 10%).
| Partner | Rate |
|---|---|
| Singapore | 15% |
| Slovak Republic | 15% |
| Turkey | 15% |
| Philippines (this treaty) | 20% |
| Thailand | 20% |
| Canada | 25% |
| United States | 25% |
🇵🇭Philippines's Network
Among Philippines's 28 active treaty partners, the 20% general dividend rate ranks 19th (median: 15%).
| Partner | Rate |
|---|---|
| Turkey | 15% |
| Vietnam | 15% |
| Indonesia | 20% |
| India (this treaty) | 20% |
| Thailand | 20% |
| Austria | 25% |
| Australia | 25% |