Global Investing 2.0

Keep More of Your Foreign Dividends in 2026

If you own shares in global giants like Apple (USA), LVMH (France), or Samsung (South Korea), your "payday" just got a new set of rules. As of April 1, 2026, India’s new tax law (the Income Tax Act, 2025) is officially in charge.

The good news? You can still avoid being taxed twice on the same dollar. The catch? The paperwork has changed. Here is your jargon-free guide to making sure you don't lose your hard-earned dividends to unnecessary taxes.

1. The Two-Step Tax Dance

When a foreign company pays you a dividend, two countries want a piece of the pie:

• Step 1 (The Foreign Country): They take a "Withholding Tax" before you see the money.
• Step 2 (India): India taxes that same income based on your total yearly earnings.

The Strategy: Use "Tax Treaties" to tell the foreign country not to take the full amount, then tell India to give you a discount because you already paid tax abroad.

2. What’s New in the 2026 Treaties?

USA: The treaty caps your tax at 25%. Pro-Tip: Using Ireland-domiciled ETFs can lower this to 15% automatically.

3. Your New "Paperwork Shield"

To get these lower tax rates, you need these three "VIP passes":

• Form 41: Replaces Form 10F. You must file this once per year to claim treaty benefits.
• TRC (Tax Residency Certificate): Your official ID from the Indian Tax Dept.
• Form 44: Replaces Form 67 to claim your tax discount. If your credit is >₹1,00,000, you need a CA's signature.

4. Let’s Do the Math: The Samsung Example

Imagine you receive ₹1,00,000 in dividends from Korea. You are in the 30% Indian tax bracket.

5. Frequently Asked Questions

Disclaimer: Tax laws are complex. Consult a professional before making investment decisions.