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TAXATION OF OUTBOUND PAYMENTS

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TAXATION OF OUTBOUND PAYMENTS

International taxation

Some withholding tax rates for outbound payments would increase from 15% up to 20%

 

Outbound payments for fees, royalties, personal services, consultancy, technical services and technical assistance would be subject to a 20% withholding tax.

The withholding tax rate for payments related to licensing of software would be reduced from 26.4% to 20%.

Additionally, the withholding tax rate applicable to payments made to foreign parent companies for management or administration fees would be 33%.

Summary of proposed changes to rates applicable to outbound payments:

Table 1