Dividend from foreign subsidiary

Hi all,

I have a doubt regarding tax on dividend received from Foreign subsidiary.

If a foreign subsidiary declares dividend to wholly owned Holding Domestic company, what are the tax implications on the Foreign Subsidiary and Domestic Holding  Company.

Can the Domestic Holding company claim relief of the tax paid by Subsidiary in foreign country under DTAA. And again if the Holding company declares dividend to its shareholders, can it set off the dividend paid by subsidiary in foreign country.

Replies (1)

Divdend received from foreign subsidary company is taxable.. you have to pay Additional Dividend Distribution Tax On This And When Domestic Holding Company Issue Dividen You Can Claim Set of For the dividend received from Foriegn Company... suppose indian company paid 500000 dividend and received 100000 deiveded from subsidary company the it have to pay DDT on 4 lacs only provided dividend received from subsidary company and dividend issued by holding company in same financial year

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