With tax authorities increasing their scrutiny of withholding tax compliance in recent years, this area has naturally received more focus in our practice. The initiative to publish official withholding tax guidance is certainly a step in the right direction, especially given that the tax changes and related interpretation issues in recent years have only added to uncertainty among taxpayers.

Official guidance should resolve doubts. But will it?

In our opinion, the published draft does not respond to business needs. We have already reported numerous issues that must be discussed and refined before the final version is published. We also want to take part in further consultations, believing that we can make a valuable contribution to the policy formulation process.