<\/span><\/h3>\n\n\n\nQ1. What is the withholding tax rate on dividends paid to foreign shareholders in India in 2026?<\/strong> The standard rate is 20% plus surcharge and cess. However, if a valid DTAA exists between India and the shareholder’s country of residence, the rate may be reduced to 5%\u201315%. To claim the reduced rate, the non-resident must submit a Tax Residency Certificate and Form 10F before the payment date.<\/p>\n\n\n\nQ2. Do MNCs need RBI approval to repatriate dividends from India?<\/strong> Generally, no. Dividend remittances are current account transactions under FEMA and do not require prior RBI approval if the original investment was made through compliant FDI channels. The company must, however, complete Form 15CA\/15CB filings and deduct applicable TDS before the bank processes the transfer.<\/p>\n\n\n\nQ3. Can an Indian branch office or liaison office repatriate profits like a subsidiary?<\/strong> No. Branch offices can remit profits after obtaining RBI approval and fulfilling annual compliance requirements. Liaison offices cannot repatriate profits \u2014 they are only permitted to undertake representational activities and cannot engage in commercial operations or profit generation.<\/p>\n\n\n\nQ4. How does GIFT City IFSC benefit MNCs on dividend repatriation?<\/strong> Entities registered within GIFT City’s IFSC framework can benefit from exemptions on dividend income, capital gains, and interest under Section 10 of the Income Tax Act for qualifying periods. This makes GIFT City a strategically attractive repatriation hub for financial services companies and investment holding entities.<\/p>\n\n\n\nQ5. What is Form 15CB, and who needs to issue it for international remittances?<\/strong> Form 15CB is a certificate issued by a practicing Chartered Accountant confirming that the remittance is either not taxable in India or that appropriate TDS has been deducted. It is mandatory for remittances exceeding \u20b95 lakh in a financial year and must be obtained before Form 15CA is filed on the income tax portal.<\/p>\n","protected":false},"excerpt":{"rendered":"For any multinational corporation operating in India, profit repatriation tax India MNC regulations represent one of the most consequential \u2014 and often misunderstood \u2014 aspects of cross-border business. Whether you are a foreign company running an Indian subsidiary, a global startup scaling operations in South Asia, or an NRI investor earning returns from Indian ventures, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[812,1],"tags":[],"class_list":["post-9186","post","type-post","status-publish","format-standard","hentry","category-blog","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/comments?post=9186"}],"version-history":[{"count":2,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9186\/revisions"}],"predecessor-version":[{"id":9191,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/posts\/9186\/revisions\/9191"}],"wp:attachment":[{"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/media?parent=9186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/categories?post=9186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/startupsolicitors.com\/blog\/wp-json\/wp\/v2\/tags?post=9186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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