Withholding Tax
What is the rate?
20% or a rate agreed in the treaty.
Who should pay?
The payee should pay directly to Administration of Taxes and will deduct the amount from the amount paid.
What happen if withholding tax is not paid?
Both payee and recipient will be held responsible for the tax. The more immediate consequence is the money cannot be remit overseas. All remittance overseas are controlled. Approval will not be given unless documentary proof of payment of withholding tax is produced.