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What is the interest withholding rate between Canada and India?
Under the Canada-India tax treaty, the withholding rate on interest is 15%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 15% rate compares to a median of 10% across Canada's 51 active treaty partners, and 10% across India's 48 active partners.
Network Comparison
Canada
Rank 44 of 51 active treaties (lowest rate = #1)
Lower rates with: Chile (15%), Cyprus (15%), Egypt (15%)
Higher rates with: Malaysia (15%), Peru (15%), Philippines (15%)
India
Rank 39 of 48 active treaties (lowest rate = #1)
Lower rates with: United Arab Emirates (12.5%), Australia (15%), Brazil (15%)
Higher rates with: Egypt (15%), Spain (15%), United Kingdom (15%)
Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.