Title What is Withholding Income Tax and what type of transactions does it apply to?
Description

Withholding Income Tax is tax withheld at source. A person making certain payments deducts tax, at the applicable rate, and remits the tax to the Commissioner on behalf of the recipient. Examples of payments subject to withholding tax include, among others: -



  • Management, professional or training fees

  • Consultancy fees, Legal fees, Audit fees

  • Contractual fees

  • Winnings

  • Appearance at or performance to entertain

  • Royalties

  • Interest and deemed interest

  • Dividends
Category More about Withholding Tax