The Special Contribution for the Defense Tax law governing the withholding requirements for rent payments, has been amended.
According to the particular modifications, starting on June 9 2023, anyone who is required to deduct a special contribution for defense from rent payments must do so by paying the deducted amount in two installments by June 30 and December 31 of each year.
Rents paid during the first and second semesters of a particular year, respectively, will be subjected to interest charges at the rate of 2.25% in cases where the special contribution for defense is not withheld, or is withheld but not paid within the month after the 30 June and 31 December of each year. A penalty of 5% on the due tax will be applied in the cases that the due tax is not timely paid.
As always, for further information, questions, explanations, or assistance with any other tax-related concern, please contact the Department of Taxation of Fintax Accountants Limited.
