The Minister of Finance has approved the reinstatement of Withholding Tax (WHT) rate of 5% on all aspects of building, construction and related activities. The approval was given via an official gazette dated 23 November 2016.
This gazette explicitly revokes the previous regulation issued by the immediate past government in 2015, which reduced the WHT rate on such related transactions from 5% to 2.5%.
The effective date for compliance with the reversed rate is 9 November 2016 as requirement for compliance will not be retrospective. Please refer to the gazette HERE .
We therefore advise that all stakeholders commence compliance with the revised WHT rates of 5%.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.