{"id":921,"date":"2019-04-07T06:50:55","date_gmt":"2019-04-06T22:50:55","guid":{"rendered":"http:\/\/ehluar.com\/main\/?p=921"},"modified":"2019-04-07T06:55:33","modified_gmt":"2019-04-06T22:55:33","slug":"withholding-tax","status":"publish","type":"post","link":"http:\/\/ehluar.com\/main\/2019\/04\/07\/withholding-tax\/","title":{"rendered":"Withholding Tax"},"content":{"rendered":"\n<p>The following are updates to withholding tax:<\/p>\n\n\n\n<p><strong>Interest and similar payments subject to withholding tax under s 45A<\/strong><\/p>\n\n\n\n<p>The new s 12(6AA) provides that the reference to \u201cinterest\u201d in\ns 12(6), in the case of an arrangement that is a finance lease of any machinery\nor plant that is treated as sold by the lessor to the lessee made under s\n10D(1), a reference to the part of any payment by the lessee that is income of\nthe lessor under s 10D(2A).<\/p>\n\n\n\n<p><strong>Rental payments subject to withholding tax under s 45A<\/strong><\/p>\n\n\n\n<p>The new s 12(7AA) provides that any payment by the lessee to\nthe lessor under a finance lease of any machinery or plant that is not treated\nas \u201ca sale\u201d, is treated as a payment under an agreement or arrangement for the\nuse of movable property under s 12(7)(d).<\/p>\n\n\n\n<p><strong>Withholding tax rate on REIT distributions under s 45G<\/strong><\/p>\n\n\n\n<p>In Budget 2019, it was announced that the reduced\nwithholding tax rate of 10% on distributions made by a REIT to qualifying\nnon-resident non-individual unit holders under s 43(3B) will be extended till\n31 December 2025. Withholding tax does not apply to any distribution made by a\nREIT where tax has already been paid, on the income from which the distribution\nis made, by the trustee of the trust under s 45G(4). The 10% concessionary\nwithholding tax rate on such REITs ETFs distributions received by qualifying\nnon-resident non-individuals will also be extended till 31 December 2025.<\/p>\n\n\n\n<p><strong>Relevant definitions\nfor withholding tax on interest payments<\/strong><\/p>\n\n\n\n<p>The various definitions relevant for withholding tax on interest payments have also been updated.<\/p>\n\n\n\n<p><strong>Withholding tax\nexemption on interest payments<\/strong><\/p>\n\n\n\n<p>The changes to the withholding tax exemptions for the\nfinancial sector that were announced in the 2018 Budget have been legislated\nthrough the:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (No.2) Notification 2018<\/li><li>Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (Amendment No. 5) Notification 2018<\/li><li>Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (Amendment No. 4) Notification 2018<\/li><li>Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (Amendment No. 3) Notification 2018<\/li><li>Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (Amendment No. 2) Notification 2018<\/li><li>Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (Amendment) Notification 2018<\/li><li>Income Tax (Exemption of Interest and Other Payments for Economic and Technological Development) (Amendment No. 6) Notification 2018<\/li><li>Income Tax (Qualifying Debt Securities) (Amendment) Regulations 2018, and<\/li><li>Income Tax (Concessionary Rate of Tax or Exemption for Income Derived from Debt Securities) (Amendment) Regulations 2018.<\/li><\/ul>\n\n\n\n<p>The Income Tax (Exemption of Interest and Other Payments for\nEconomic and Technological Development) (Amendment) Notification 2019 extends\nthe automatic withholding tax exemption on interest payments made by Financial\nSector Incentive-Headquarter Services (FSI-HQ) award recipients during the\nperiod of their FSI-HQ award for qualifying loans to 31 December 2023.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The following are updates to withholding tax: Interest and similar payments subject to withholding tax under s 45A The new s 12(6AA) provides that the reference to \u201cinterest\u201d in s 12(6), in the case of an arrangement that is a finance lease of any machinery or plant that is treated as sold by the lessor [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_et_pb_use_builder":"off","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,6],"tags":[],"class_list":["post-921","post","type-post","status-publish","format-standard","hentry","category-incometax","category-techupdates"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/comments?post=921"}],"version-history":[{"count":1,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/921\/revisions"}],"predecessor-version":[{"id":922,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/posts\/921\/revisions\/922"}],"wp:attachment":[{"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/media?parent=921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/categories?post=921"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ehluar.com\/main\/wp-json\/wp\/v2\/tags?post=921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}