Summary for withholding tax on resident and non-resident
Withholding Tax on Resident
Any resident taxpayer carrying on business and who makes any payment in cash or in kind to a resident paxpayer shall withhold, and pay a tax, an amount according to the below mentioned rates which are applied to the amount paid before withholding the tax:
– Performance of Services, Royalty for Intangibles, Interests in Minerals at 15%
– Payment of Interest to Non-Bank or Saving Institution Taxpayers at 15%
– Payment of Interest to Taxpayers who have Fixed Term Deposit Accounts at 6%
– Payment of Interest to Taxpayers who have Non-Fixed Term Saving at 4%
– Payment of Rental/Lease of Movable and Immovable Property at 10%
Withholding tax on non-resident
Any resident taxpayer carrying on business and who makes any of the following payments to a non-resident taxpayer shall withhold, and pay as tax, an amount equal to 14 percent of the amount paid.
The following points are subject to withholding tax at 14%:
– Payment of Interest at 14%
– Payment of Royalty, Rental/Leasing, and Income related to the use of Property at 14%
– Payment of Management Fee and Technical Services at 14%
– Payment of Dividend at 14%