General update by IBBZ Accounting on latest tax news, business growth and technology tips.
Is your business struggling financially, operationally or you just do not have enough time to focus on the business.
Have you thought about restructuring your company? Have you heard the term “restructuring”, what is this, is this right for your business?Continue reading
What is RWT (resident withholding tax)
It is a tax deducted on dividend before making a payment to the shareholder. For example, if company made a profit of $100 before tax, $28 would be income tax. Net profit after tax $72 will be a liability payable to shareholders. A payment of $72 will be made to the shareholders, the name of this payment is dividend. The IRD is interested in collecting tax from this payment, with current highest tax rate being 33%, further 5% of deduction is imposed on the company. Hence, $5 will be deducted and paid to the IRD, this is called RWT.Continue reading
The changes on Dividend and RWT are outlined in Taxation (Annual Rates for 2016-17, Closely Held Companies, and Remedial Matters) Bill.
The bill received royal assent on 30-03-2017. This Act came in to force on the same date, and in practice from 01-04-2017 income year.