DCSL Digest - 11th Publication

Withholding tax is an advance income tax payment which is intended to bring taxpayers such as consultants contractors, suppliers, landlords, and shareholders into the tax net. Withholding tax is not another type of tax but the deduction of tax at source from payment made in certain transactions to a taxable person from the supply of goods and services. Withholding Tax was introduced to curb tax evasion by allowing payment to be deducted at source and remitted to the appropriate tax authority - Federal or State Board of Internal Revenue within 21 days after the end of the month the transaction was made.

• DCSL Digest - 11th Publication