This protocol to the tax treaty will enter into force on 18 October 2025. 

The amending protocol to the tax treaty between Brazil and India (1988), as amended by the 2013 protocol, will enter into force on 18 October 2025.

This protocol, signed on 24 August 2022, marks the second amendment to the treaty.

The protocol introduces key updates to modernise tax provisions between the two countries. It aligns the preamble with OECD BEPS standards and updates the scope of taxes to include Brazil’s federal income tax and India’s income tax with surcharges.

The withholding tax rates are revised:

  • 10% for dividends if a company holds at least 20% of the payer’s capital for 365 days, otherwise 15%;
  • 10% for interest on long-term loans by banks for equipment or investment projects, otherwise 15%; and
  • 15% for royalties on trademarks, otherwise 10%.
  • A new article adds a 10% withholding tax on fees for technical, managerial, or consultancy services, ensuring clarity and fairness in cross-border taxation.

The protocol will generally apply in Brazil starting 1 January of the following year and in India from 1 April of the same year.

Earlier, Brazil’s National Congress ratified the amending protocol to its 1988 tax treaty with India on 11 September 2025.