Under the new rules, French companies holding at least 10% in an Indian entity ‌will pay a 5% tax on dividends, down from 10% earlier.

India has ​revised its three-decade-old tax treaty with France, which will help major French ‌companies save millions of dollars in dividend levies, while ​it also broadens New Delhi’s powers to ⁠tax certain transactions, the finance ministry said on Monday.

Under the new rules, French companies holding at least 10% in an Indian entity ‌will pay a 5% tax on dividends, down from 10% earlier. For minority French shareholdings of ‌under 10% in Indian companies, however, dividend tax will ‌rise ⁠from 10% to 15%. Reuters was first to report ⁠the details of the planned tax treaty in December. The new tax treaty would likely have implications for large French portfolio investors, as well as ​companies like Capgemini, Accor, ‌Sanofi, Pernod Ricard, Danone and L’Oreal — all of which have expanded their presence in India in recent years.