24/01/2021

The department called on the taxpayers to adhere to the provisions of Article 12 / A / 1 of the Income Tax Law No. 34 of 2014 and its amendments and to commit to paying the tax amounts withheld from the service allowance amounting to 5 percent of the value of the services provided to them on a monthly basis.

The department also called on the taxpayers to enter the financial receipts for these deductions electronically through the department's e-government portal using the username and password of the company paying the financial receipt by entering the information slips icon and selecting other deductions, and from there to direct entry of deductions or uploading Deductions file according to the type of file available with the company. .

ISTD clarified that these receipts are entered through the tax number or the national number of the taxpayer who performs the service (the beneficiary), the value of the amount paid, and the withholding tax of 5 percent of the value of the service allowance.

The department indicated that the tax is deducted at a rate of 5% of any amounts paid by a resident legal person as fees or wages or similar things for any resident person including physicians, lawyers, engineers, auditors, experts, consultants, taxpayers agents, insurance agents and reinsurance brokers, arbitrators, brokers and agents. Commission brokers, financial intermediaries, and commission freight brokers.

The department also indicated that if there are any differences in the amount of withheld income tax between the entry on the department’s financial portal and what the taxpayer has stated on the annual income statement, then the company paying the financial receipt that supplied the deduction shall be asked to correct the situation.