The 2024 Withholding Tax Regulations, approved in July 2024 and published in the Official Gazette in October 2024, officially came into effect on January 1, 2025.

Key changes in the regulations include:

1. Exemption for small businesses to reduce tax burdens on SMEs.

2. Reduced rates for businesses with low profit margins.

3. Exemptions for manufacturers and farmers, encouraging local production.

4. Anti-evasion measures to minimize tax avoidance.

5. Streamlined processes for credit and tax utilization.

6. Updates reflecting global best practices and emerging issues.

7. Clear definitions and guidelines on tax deductions.

These reforms aim to boost compliance, encourage investment, and foster economic growth. For further details, download the Regulations here.