On 28 August 2013, the government published a Ministerial Decree updating the list of non-cooperative states or territories (NCSTs) with effect from 1 January 2013.
A major consequence of being on the list of NCSTs is the increase in the tax burden on outbound payments to such a state or territory. For example, dividend withholding tax is levied at a rate of 75% on payments to an NCST. The normal dividend withholding tax rate on outbound payments is 30%.
Under the terms of the Ministerial Decree:
|-||the Philippines is removed from the list; and|
|-||British Virgin Islands, Bermuda and Jersey are added to the list.|
Note. The removal of a state or territory from the list takes effect immediately, whereas the inclusion of a state or territory thereon takes effect from the following calendar year. As a result, the attendant counter-measures do not apply in respect of a state or territory immediately upon its inclusion on the list, but apply from the following year if that state or territory is still on the list at that time.
We’re here to answer any questions you have about the Orbitax products and services.
We’re committed to providing high value, low cost tax research and management solutions.
Our Twitter account is where you can find latest information, news updates, offers and lots more.