India amends tax treaty with France, revises dividend tax structure

Sanofi SA

23/02/2026 07:50

NEW DELHI, Feb 23 (Reuters) - India has amended its tax treaty with France and removed the most‑favoured‑nation clause, the finance ministry said on Monday.

The government said it has also modified how it taxes dividend income, replacing the existing flat 10% rate with a split structure.

Under the revised framework, dividend income will now be taxed at 5% for shareholders holding at least 10% of a company's capital and at 15% for all other investors.

Reuters reported on December 12 that India and France have struck a deal to revise their 1992 treaty to halve the tax on dividends paid by Indian units to French parents.

 (Reporting by Nikunj Ohri)

 ((Sarita.ChagantiSingh@thomsonreuters.com;))