Indian Dividends in Germany

How Germany taxes it

Dividends from Indian-listed companies are foreign-source dividend income for Germany, taxed at your marginal rate. Like Indian mutual fund gains, they do NOT fall under Germany's 25% Abgeltungsteuer flat tax — that regime applies only to EU/EEA investments by default. The full dividend, gross of any Indian withholding, is the German taxable amount.

DTAA treatment

DTAA Article 10 caps Indian dividend withholding at 10% (with proper Form 10F + TRC paperwork; otherwise India's domestic rate applies, which since 2020 is 0% on most dividends to non-residents but with Section 195 TDS at 20%+surcharge in practice). The 10% withholding is creditable in Germany; excess is not refundable from Germany.

Where it goes on your return

Indian dividends go on Anlage AUS line 10 (foreign dividends), with gross dividend in EUR and Indian withholding tax in EUR. ESOP/RSU dividends from Indian-listed shares follow the same treatment as portfolio dividends.

Common gotchas

• Abgeltungsteuer 25% does NOT apply to non-EU/EEA dividends — the marginal-rate treatment often produces higher German tax
• Indian withholding is capped at 10% under DTAA only with Form 10F + TRC filed at the depositary or DP — without paperwork, India withholds 20%+
• Dividends from Indian mutual funds are different from dividends on Indian shares — MF distributions follow the capital-gains rules, not Article 10