Interest to a foreign company - tax applicability

[rama jogi reddy]

withholding tax for interest paid by a company to a foreign company (denmark) u/s195 Income tax @ 20% and also DTAA 20% is it diffierent from above?

[Ravi Chopra]

I am not sure but in my view the rate of withholding tax in DTAA with Denmark range from 10% to 15%. Kindly check the relevant provisions of DTAA.

Withholding tax on cross-border interest requires applying domestic withholding rules and applicable tax treaty rates-verify DTAA. Whether interest paid to a foreign lender is subject to withholding tax under domestic law and whether the applicable rate differs under the double taxation avoidance agreement (DTAA)(AI Summary)