background image
8.2.1. Withholding Taxes

Capital Gains

Capital gains from the sale of shares in a private resident company by non-residents are subject to tax at the rate of 30% (normal income tax rate).

Dividend

Tax is withheld at the rate of 10% on dividends paid to non-residents.

Interest

The standard withholding tax rate on interest paid to non-residents is 18%. However, varying other rates apply, including 9% on bank deposits, 13% on corporate bonds and 15% for most interest on loans to businesses,

Royalty Copyright

Royalties paid to non-residents are subject to withholding tax at the rate of 30% but only on 50% of their gross amount (effective rate: 15%).

Royalty Patent

Royalties paid to non-residents are subject to withholding tax at the rate of 30% but only on 50% of their gross amount (effective rate: 15%).

Royalty Trademark

Royalties paid to non-residents are subject to withholding tax at the rate of 30% but only on 50% of their gross amount (effective rate: 15%).

Service Management

Tax is withheld at the rate of 30% but only on 50% of the gross amount of the payment (effective rate: 15%).

Service Technical

Tax is withheld at the rate of 30% but only on 50% of the gross amount paid out (effective rate: 15%).

Below is a discussion of domestic withholding tax rules for most of the common cross border payments.

Capital Gains 30.0 %
Dividends 10.0 %
Interest 15.0 %
Royalty Copyright 15.0 %
Royalty Patent 15.0 %
Royalty Trademark 15.0 %
Sales 0.0 %
Service Management 15.0 %
Service Technical 15.0 %

* Rates are current as of 27 November 2022