[India And France Revise Tax Treaty, Halving Dividend Tax And Eliminating France's "Most Favored Nation" Status] Indian Government Documents Reveal That India And France Have Reached An Agreement To Revise Their 1992 Tax Treaty, Halving The Tax Rate On Dividends Paid By Indian Subsidiaries To Their French Parent Companies. This Is Expected To Save Companies With Significant Operations In India Millions Of Dollars. In Exchange, India Will Expand Its Power To Tax Share Transfers By French Investors And Revoke France's "Most Favored Nation" Status, Which Previously Granted France Certain Tax Benefits. One Key Change Is That French Companies Holding More Than 10% Of Shares In Indian Entities Will Now Pay A 5% Tax On Dividends Received, Up From The Previous 10%. However, For French Minority Shareholders Holding Less Than 10%, The Dividend Tax Rate Will Increase From 10% To 15%. Currently, India Can Only Tax Share Transfers When A French Entity Holds More Than 10% Of The Shares In An Indian Company; The New Proposal Will Eliminate This Threshold