The Deputy Minister of Finance presented a bill to the Parliament regarding to a proposal for changes to the tax treatment of certain profit distributions on 16 December 2016. According to the bill, it would modify the dividend withholding rules and would make holding cooperatives subject to tax in certain occurrences. It will be effective from 1 January 2018.
At present, profit distributions by cooperatives are not subject to dividend withholding tax rather than Profit distributions by private limited liability companies or public limited companies are subject to tax. The bill would commence a dividend withholding tax obligation for holding cooperatives.