According to Indian government documents, India and France have reached an agreement to amend the tax agreement signed in 1992 to halve the tax rate on dividends paid by Indian subsidiaries to French parent companies, which is expected to save millions of dollars for companies with significant business in India. In exchange, India will expand its power to tax French investors' equity transfers and withdraw the “most-favoured-nation” status granted to France, which once enabled France to enjoy specific tax benefits. One of the key changes is that when French companies hold more than 10% of the shares in an Indian entity, they are required to pay 5% tax on the dividends they receive, compared to the previous tax rate of 10%. However, for French minority shareholders holding less than 10% of the shares, the dividend tax rate was raised from 10% to 15%. Currently, India can only levy taxes on equity transfers when French entities hold more than 10% of the shares in Indian companies; the new proposal will remove this threshold.

According to Indian government documents, India and France have reached an agreement to amend the tax agreement signed in 1992 to halve the tax rate on dividends paid by Indian subsidiaries to French parent companies, which is expected to save millions of dollars for companies with significant business in India. In exchange, India will expand its power to tax French investors' equity transfers and withdraw the “most-favoured-nation” status granted to France, which once enabled France to enjoy specific tax benefits. One of the key changes is that when French companies hold more than 10% of the shares in an Indian entity, they are required to pay 5% tax on the dividends they receive, compared to the previous tax rate of 10%. However, for French minority shareholders holding less than 10% of the shares, the dividend tax rate was raised from 10% to 15%. Currently, India can only levy taxes on equity transfers when French entities hold more than 10% of the shares in Indian companies; the new proposal will remove this threshold.