Withholding Tax

Course Objectives

• Understand the scope of withholding tax.
• Understand the withholding taxes obligation that arises from reimbursements and disbursements in respect of services rendered by non-residents.
• Avoid penalties that may arise if deductions are wrongfully claimed in respect of payments for which the withholding taxes have not been remitted to the authority.

Target Audience

Chief Financial Officers, Financial Controllers, Finance Managers, Accountants, Tax Consultants, Company Secretaries, Tax Practitioners/Advisors.

Methodology

PowerPoint presentations, discussions and case studies.

Course Modules

Module 1 : Introduction, Responsibility of Payer

• Scope of WHT
• Rates of WHT
• Responsibilities of the payer
• Non-deductible expenses and disallowed capital expenditure

Module 2 : Royalty, Interest

Royalty

• Definition
• Derivation of Income
• Deduction of WHT
• Penalty for non-compliance
• Penalty on incorrect return
• Exemption

Interest

• Definition
• Derivation of income
• Deduction of WHT
• Penalty for non-compliance
• Penalty for incorrect return
• Exemption
• Minimisation of WHT – treaty protection

Module 3 : Public Entertainers Remuneration, Special Classes of Income

Public Entertainers Remuneration

• Scope
• Derivation of income
• Deduction of WHT
• Exemption
• Penalty for non-compliance
• Penalty for incorrect return

Special Classes of Income

• Definition
• Scope of services
• Derivation of income
• Deduction of WHT
• Exemption
• Penalty for non-compliance
• Penalty on incorrect return

Module 4 : Other Income in S4(f), Contract Payments, Agent, dealer or distributor

Other Income in S4(f)

• Derivation of income
• Deduction of WHT
• Penalty for non-compliance
• Set off for non-resident
• Exemption

Contract Payments

• Derivation of income
• Collection of WHT
• Definition
• Manner of set off
• Penalty for non-compliance
• Waiver of WHT
• Potential overlap with S4A
• Tax planning – splitting of contracts

Agent, dealer or distributor

• Threshold
• Time frame
• Late payment penalty
• Prepayment of tax
• Recovery
• Non deduction
• Remission of penalty
• Tax administration