On 30 December 2020, the Ministry of Finance issued a decree dated 28 December 2020, postponing the introduction of the withholding tax and refund system until June 30, 2021. This applies to both corporate tax and individual income tax purposes.
This is a further extension of the deadline for the introduction of a new withholding tax (WHT) collection mechanism. The introduction of this new mechanism was originally planned for 1 January 2019, after which it has been postponed several times, with the previous effective date planned as of 1 January 2021.
The additional time resulting from postponing the collection of WHT to the 19% and 20% statutory rates should allow taxpayers and tax remitters to analyze the impact of the new WHT regime.
