Finance & Treasury across borders

Sources for the worked example

Each statement is numbered to the source it was checked against. We use official sources where we can, and each statement says whether it was checked against an official or a secondary source. Sources last checked on 19 October 2026. None of it has been professionally reviewed yet: it is research checked against official and secondary sources by WONE Global, not legal or tax advice.

1. A German GmbH may not pay out to its shareholders assets that are needed to maintain its registered share capital. Capital maintenance rule in section 30(1) sentence 1 GmbHG; it applies to any payment or benefit to shareholders, not only formal dividends.

   Federal Ministry of Justice (gesetze-im-internet.de) — GmbH-Gesetz (GmbHG), § 30 Kapitalerhaltung · § 30(1) sentence 1 · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

2. An Indian company may declare or pay a dividend for a financial year only out of that year's profits after depreciation, out of undistributed profits of previous years, or out of money provided by government for the purpose under a guarantee. Companies Act, 2013, section 123(1) (central law). A company may first transfer such percentage of profits to reserves as it considers appropriate.

   BNB Legal (bare act reproduction) — Companies Act 2013, Chapter VIII: Declaration and payment of dividend · Section 123(1) · Checked 19 October 2026 · Checked against a secondary source · Not yet professionally reviewed

   Secondary reproduction of the statute; India Code and the Ministry of Corporate Affairs PDF refused automated access.

3. An Indian company must deposit the amount of any declared dividend, including an interim dividend, in a separate account with a scheduled bank within five days of declaration. Companies Act, 2013, section 123(4). Unpaid or unclaimed dividends must be moved to an Unpaid Dividend Account within seven days after the 30-day payment period (section 124).

   BNB Legal (bare act reproduction) — Companies Act 2013, Chapter VIII: Declaration and payment of dividend · Sections 123(4) and 124(1) · Checked 19 October 2026 · Checked against a secondary source · Not yet professionally reviewed

   Secondary reproduction of the statute; India Code and the Ministry of Corporate Affairs PDF refused automated access.

4. A UAE limited liability company must set aside 5% of its net profits each year to a statutory reserve, and the partners may stop the transfers once the reserve reaches half of the capital. Federal Decree-Law No. 32 of 2021 on Commercial Companies, Article 103 (mainland companies). Free zone companies follow their own regulations. Federal Decree-Law No. 20 of 2025 amended the law and was not checked for changes to this article.

   Ministry of Economy and Tourism — Federal Decree-Law No. (32) of 2021 on Commercial Companies · Article 103 · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

5. German capital gains withholding tax (Kapitalertragsteuer) on dividends is charged at 25% of the gross distribution. Section 43a(1) sentence 1 no. 1 EStG, applying to capital income under section 43(1) sentence 1 no. 1 EStG. The 5.5% solidarity surcharge is added; treaty and EU Parent-Subsidiary Directive relief can reduce the final tax.

   Federal Ministry of Justice (gesetze-im-internet.de) — Einkommensteuergesetz (EStG), § 43a Bemessung der Kapitalertragsteuer · § 43a(1) sentence 1 no. 1 · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

6. With the 5.5% solidarity surcharge, German dividend withholding is 26.375%; a foreign corporate shareholder can recover the excess over 15.825%; qualifying EU parents holding at least 10% for a year are exempt; and the treaty dividend rates listed are 5%, 10% or 15% for the UK, 10% for India, while the Germany-UAE treaty expired on 31 December 2021. Ordinary interest paid to non-residents is generally not subject to German withholding tax; exceptions include convertible and profit-sharing bonds and interest on loans secured on German property.

   PwC Worldwide Tax Summaries — Germany: Corporate - Withholding taxes · Dividends; interest; treaty table · Checked 19 October 2026 · Checked against a secondary source · Not yet professionally reviewed

   Secondary source used for combined effective rates and treaty rates; the statutory 25% rate and two-fifths refund are separately confirmed on the EStG.

7. The Income Tax Department lists general domestic rates for non-residents of 20% on dividends, 20% on interest on foreign-currency borrowings, 20% on royalties and 20% on fees for technical services, with lower rates for specified bonds and funds. Income-tax Act rates as presented by the department (1961 Act section references such as s115A); surcharge and cess not shown.

   Income Tax Department, Government of India (CBDT) — Tax Rates - DTAA v. Income-tax Act · Act rate notes · Checked 18 October 2026 · Checked against an official source · Not yet professionally reviewed

   Section references on the page are to the 1961 Act; the 2025 Act renumbered these provisions. Reused from tx-withholding-and-treaties-005.

8. The Income Tax Department lists India-UK treaty rates of 10% on dividends (15% for certain property-linked distributions by investment vehicles), 10% (paid to a bank) or 15% on interest, and 10% or 15% on royalties and fees for technical services. India-UK DTAA.

   Income Tax Department, Government of India (CBDT) — Tax Rates - DTAA v. Income-tax Act · Table row: UK · Checked 18 October 2026 · Checked against an official source · Not yet professionally reviewed

   Reused from tx-withholding-and-treaties-013.

9. Withholding tax on UAE-sourced income paid to non-residents is set at 0%. Covers dividends, interest, royalties and service fees paid to non-residents, unless the income is attributable to a UAE permanent establishment or nexus; the Cabinet may set other rates.

   Ministry of Finance — Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses and its amendments · Article 45 · Checked 18 October 2026 · Checked against an official source · Not yet professionally reviewed

   Reused from ae-tax-004.

10. The German capital maintenance rule does not apply to payments made under a domination or profit transfer agreement, to payments covered by a fully recoverable counter-performance or repayment claim against the shareholder, or to the repayment of a shareholder loan. Section 30(1) sentences 2 and 3 GmbHG. The fully recoverable claim exception is the basis on which upstream loans and cash pool sweeps from a GmbH are assessed.

    Federal Ministry of Justice (gesetze-im-internet.de) — GmbH-Gesetz (GmbHG), § 30 Kapitalerhaltung · § 30(1) sentences 2 and 3 · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

11. An Indian ECB borrower obtains a loan registration number through Form ECB 1 and reports drawdowns and debt servicing on Form ECB-2 within seven calendar days after the month in which they occur. Reporting under the 2026 amendments as described in commentary; a borrower with an active LRN that fails to report for four consecutive quarters and cannot be traced may be reported to the RBI and the Directorate of Enforcement.

    TT&A (law firm commentary, tta.in) — External Commercial Borrowings: liberalisation of framework (Banking and Finance, February 2026) · Reporting · In force from 16 February 2026 · Checked 19 October 2026 · Checked against a secondary source · Not yet professionally reviewed

    Secondary source; confirm against the RBI Master Direction on reporting.

12. In Germany, interest expense that exceeds interest income is deductible only up to 30% of the business's tax EBITDA (verrechenbares EBITDA), and the restriction does not apply where net interest expense is less than EUR 3 million. Zinsschranke, section 4h(1) and (2)(a) EStG, applied to corporations through the Corporation Tax Act. Non-deductible interest is carried forward; unused EBITDA capacity is carried forward for five years.

    Federal Ministry of Justice (gesetze-im-internet.de) — Einkommensteuergesetz (EStG), § 4h Betriebsausgabenabzug für Zinsaufwendungen (Zinsschranke) · § 4h(1) sentences 1 to 6; § 4h(2) sentence 1(a) · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

13. Under section 177 of India's Income-tax Act, 2025, where an Indian company pays interest exceeding INR 1 crore in a year on debt from a non-resident associated enterprise, the excess interest disallowed is the lower of the interest above 30% of EBITDA and the interest paid to associated enterprises. Central law. Debt from an unrelated lender counts if an associated enterprise guarantees it or deposits matching funds. Disallowed interest may be carried forward for up to eight tax years. Banking and insurance businesses, IFSC finance companies and certain notified NBFCs are excluded. Formerly section 94B of the Income-tax Act, 1961.

    Income Tax Department, Government of India — Section 177, Income-tax Act, 2025 · Section 177(1) to (6) · In force from 1 April 2026 · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

14. Under the UAE general interest deduction limitation rule, net interest expense is deductible up to 30% of tax-adjusted EBITDA, the rule does not apply where net interest expense does not exceed AED 12 million, and disallowed amounts can be carried forward to the next ten tax periods. Federal corporate tax. Banks, insurance businesses and certain other regulated financial services entities are excluded. A separate specific interest deduction limitation rule denies interest on related-party loans used for purposes such as paying dividends to a related party or redeeming share capital, unless the lender is taxed on the interest at 9% or more.

    PwC Worldwide Tax Summaries — United Arab Emirates: Corporate - Deductions · Interest expenses; general and specific interest deduction limitation rules · Checked 19 October 2026 · Checked against a secondary source · Not yet professionally reviewed

    Secondary source. The Ministry of Finance announcement found by search refused automated access, so the official decision text could not yet be checked.

15. A German GmbH reducing its share capital must publish the resolution with a call to creditors, pay or secure creditors who object, and may not file the reduction for registration until one year after the publication. Section 58(1) GmbHG (ordinary capital reduction). Known creditors must be notified individually; the managing directors must declare that objecting creditors have been paid or secured. The statutory minimum capital still applies.

    Federal Ministry of Justice (gesetze-im-internet.de) — GmbH-Gesetz (GmbHG), § 58 Herabsetzung des Stammkapitals · § 58(1) nos. 1 to 4 and (2) · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

16. An Indian company may reduce its share capital only by special resolution confirmed by the National Company Law Tribunal, which must give notice to the Central Government, the Registrar, SEBI for listed companies, and creditors, and consider representations made within three months. Companies Act, 2013, section 66(1) and (2) (central law). No reduction may be made while the company is in arrears in repaying deposits or interest on them.

    Corporate Law Reporter (statute reproduction) — Section 66 of Companies Act, 2013 - Reduction of share capital · Section 66(1) and (2) · Checked 19 October 2026 · Checked against a secondary source · Not yet professionally reviewed

    Secondary reproduction of the statute; India Code and the Ministry of Corporate Affairs PDF refused automated access.

17. A decision to decrease the capital of a UAE limited liability company requires approval by partners holding at least three-quarters of the shares represented at the general assembly, applied pro rata to each partner's interest. Federal Decree-Law No. 32 of 2021, Article 101(1) (mainland LLCs). Creditor notice requirements for LLC capital reductions were not visible in the text reviewed.

    Ministry of Economy and Tourism — Federal Decree-Law No. (32) of 2021 on Commercial Companies · Article 101(1) · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

18. A foreign corporation with limited German tax liability can reclaim two-fifths of the German capital gains withholding tax deducted from its dividends, independently of any treaty claim. Section 44a(9) sentence 1 EStG; subject to the anti-abuse rules in sections 50c and 50d(3) EStG. Claims under section 43b (Parent-Subsidiary Directive), section 50g or a treaty are unaffected.

    Federal Ministry of Justice (gesetze-im-internet.de) — Einkommensteuergesetz (EStG), § 44a Abstandnahme vom Steuerabzug · § 44a(9) sentence 1 · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

19. A GmbH must have share capital of at least EUR 25,000. Gesellschaft mit beschränkter Haftung (GmbH); the UG (haftungsbeschränkt) variant may be formed with less (see de-establish-005).

    Bundesministerium der Justiz / Bundesamt für Justiz (gesetze-im-internet.de) — § 5 GmbHG – Stammkapital; Geschäftsanteil · § 5 Abs. 1 GmbHG · Checked 18 October 2026 · Checked against an official source · Not yet professionally reviewed

    Reused from de-establish-001.

20. Under India's external commercial borrowing framework as amended on 16 February 2026, an eligible Indian borrower may have outstanding ECBs up to the higher of USD 1 billion and 300% of its net worth, pricing is to be in line with market conditions instead of a fixed all-in-cost ceiling, and the standard minimum average maturity is three years. Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026 (RBI, central). Borrowers regulated by financial sector regulators are outside the net-worth limit. ECBs with an average maturity under three years remain subject to the trade credit cost ceiling. ECBs with a loan registration number obtained before 16 February 2026 stay under the old framework except for reporting.

    TT&A (law firm commentary, tta.in) — External Commercial Borrowings: liberalisation of framework (Banking and Finance, February 2026) · Borrowing limit; all-in-cost; minimum average maturity · In force from 16 February 2026 · Checked 19 October 2026 · Checked against a secondary source · Not yet professionally reviewed

    Secondary source. The RBI notification and Master Direction pages could not be reached; the details are from law-firm commentary and must be confirmed against the RBI text.

21. UAE commercial companies may not distribute fictitious profits to partners or shareholders, and partners must return profits distributed in breach of the law. Federal Decree-Law No. 32 of 2021, Article 30(1) and (2) (mainland companies).

    Ministry of Economy and Tourism — Federal Decree-Law No. (32) of 2021 on Commercial Companies · Article 30 · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed

22. German GmbH managing directors are personally liable to the company for payments made out of the assets needed to maintain share capital in breach of section 30, and a shareholder resolution does not release them where the payment is needed to satisfy creditors. Section 43(3) GmbHG; section 43(2) makes directors who breach their duties jointly and severally liable for the resulting loss.

    Federal Ministry of Justice (gesetze-im-internet.de) — GmbH-Gesetz (GmbHG), § 43 Haftung der Geschäftsführer · § 43(2) and (3) · Checked 19 October 2026 · Checked against an official source · Not yet professionally reviewed