Withholding Tax (WHT) is an advance payment of income tax deducted at source. The new regulations aim to simplify rates and reduce ambiguity.
WHT serves as an advance payment of tax and is not a separate tax itself. It is deducted from payments made to vendors, contractors, and service providers.
The deducted amount is remitted to the tax authority, and a credit note is issued to the beneficiary to offset future tax liabilities. The new acts emphasize automated credit note issuance.
