DTAA Between India And Ireland: Benefits, Tax Rates & Claim Process in 2025

A DTAA is an agreement signed between two countries to prevent double taxation for non-residents. In the same manner, the DTAA between India and Ireland provides a clear framework that prevents the same income from being taxed twice. Covering salary, capital gains, royalties, and other income categories, this agreement simplifies tax compliance while encouraging trade and investment between the two nations. With tax certainty in place, individuals and enterprises benefit from smoother financial planning and reduced liabilities under this bilateral treaty.

DTAA Between India and Ireland - Quick Info

This table provides a consolidated overview of the key features of the India-Ireland DTAA, offering a quick reference for taxpayers.

Objective of the DTAA Between India and Ireland

• Elimination of Double Taxation: The core purpose is to ensure that income earned by a resident of one country in the other is not subject to taxation in both jurisdictions.
• Promotion of Mutual Investment: By providing tax certainty and reducing the overall tax burden, the agreement encourages businesses from each country to invest in the other.
• Prevention of Tax Evasion: The treaty includes provisions for the exchange of information between tax authorities, which is crucial for preventing fiscal evasion.
• Clear Allocation of Taxing Rights: It clearly defines which country has the right to tax specific types of income, thereby reducing ambiguity and potential disputes.
• Fostering Economic Relations: The DTAA strengthens the economic relationship between India and Ireland, facilitating smoother trade and business operations.

Significance of DTAA for India and Ireland

The significance of this agreement is rooted in the strong and growing economic synergy between India and Ireland, particularly in the technology and pharmaceutical sectors.

• Benefits for the Technology Sector: The DTAA is particularly significant as it provides for a lower rate of tax under the DTAA between India and Ireland on royalties and fees for technical services, which is crucial for the software and IT services industry.
• Encouragement for Foreign Investment: The treaty offers Irish companies investing in India’s rapidly growing market a stable and predictable tax environment. This is vital for sectors like education, pharmaceuticals, and technology, where Irish firms have a presence.
• Clarity for NRIs and Professionals: For the large number of Indian professionals working in Ireland and vice versa, the agreement provides clear rules on the taxation of employment income. This is a key aspect of the income tax rules for NRIs.
• Strengthening Bilateral Trade: The DTAA enhances the overall trade relationship. It allows businesses to plan their finances with greater certainty, making it easier to engage in import-export activities and form cross-border partnerships.

Taxes Covered under DTAA Between India and Ireland

It is essential to know which specific NRI taxes are included to understand the scope of the treaty. – [1]

• In India, the DTAA covers:
  • Income Tax, including any surcharge thereon.
• In Ireland, the DTAA covers:
  • Income Tax.
  • Corporation Tax.
  • Capital Gains Tax.

This comprehensive coverage ensures that most forms of income earned by residents of either country are protected from double taxation.

India-Ireland DTAA Tax Rates

These tax rates between India and Ireland are generally capped at 10%. [1]

Note: Interest or dividends earned by government bodies, such as the Reserve Bank of India, are often exempt from tax in the source country.

Taxation on Capital Gains under the DTAA Between India and Ireland 

The agreement provides specific rules for the taxation of capital gains from the sale of assets, which is a key concern for property investors. [1]

• Gains from Immovable Property: Gains from the sale of immovable property [such as land or buildings] are taxed in the country where the property is physically located. This is a vital point for NRIs who can buy property in India.
• Gains from Business Assets: Gains from the sale of movable property that is part of a "permanent establishment" [a fixed place of business like an office or factory] are taxed in the country where this establishment is situated.
• Gains from Ships and Aircraft: Gains from the sale of ships or aircraft operated in international traffic are taxable only in the country where the enterprise is resident.
• Gains from Other Assets: For any other type of asset, the capital gains are generally taxable only in the country where the seller is a resident.

What are the Documents required to claim DTAA TDS?

To claim the benefits of the lower TDS rates under the DTAA, certain documents must be submitted to the tax authorities or the payer. [1]

• Tax Residency Certificate [TRC] from the tax authorities of the country of residence.
• Self-attested copy of the PAN Card.
• Self-attested Form 10F.
• A declaration stating that the individual or company has no Permanent Establishment [PE] in the source country.
• For certain transactions, a Lower TDS certificate for NRIs may also be necessary.

How to Claim DTAA Benefits?

Claiming the benefits of the DTAA between India and Ireland involves a specific procedure during the tax filing process.[1]

• In India [for Indian residents earning in Ireland]:
  • Declare income earned in Ireland or anywhere else when filing your Indian income tax return.
  • Pay tax on this income in India according to the applicable tax slabs.
  • Claim a Foreign Tax Credit [FTC] for the taxes already paid in Ireland by electronically filing Form 67 before the due date of filing your return.
• In Ireland [for Irish residents/NRIs earning in India]:
  • Provide the necessary documents [TRC, PAN, Form 10F] to the entity in India that is paying you the income.
  • The payer in India will then deduct TDS at the lower DTAA rate. This process often involves filing Form 15CA and 15CB for NRIs.
  • When filing their tax return in Ireland, they can typically claim a credit for the taxes paid in India to avoid double taxation.

DTAA Impact on NRIs, Investors, and Businesses

The agreement has a significant positive impact on all stakeholders involved in cross-border activities between the two nations.[1]

• For NRIs: It simplifies tax obligations on income from India, such as from property investments, fixed deposits, or NRO accounts, which have specific taxation rules.
• For Investors: It provides clarity and certainty on the taxation of capital gains and dividends, which is crucial for making informed investment decisions, especially for those considering the top cities in India for NRI property investment.
• For Businesses: It creates a stable and predictable tax environment, which reduces risk and encourages companies in the technology and service sectors to expand their operations in the other country.

How NoBroker Can Help with NRI Services?

Managing taxes, property, and compliance becomes simpler with expert support. Through guidance on the DTAA between India and Ireland, NoBroker assists NRIs in claiming tax relief, understanding TDS deductions, and ensuring proper documentation. From property advisory to legal due diligence and taxation support, the platform offers end-to-end services tailored for global Indians. With transparent processes and expert insights, NoBroker makes cross-border property and tax management more efficient, ensuring NRIs save both time and money.

Know More How DTAA Works in India with Different Countries: