Pack Tax & Accounting HUB

Withholding Tax Interest from Foreign Sources Borrowing

General Tax Department (GDT) issued the Prakas for implementation of Withholding Tax Interest from Foreign Sources Borrowing for Microfinance Institution. The withholding applied rate is 14% but MFI pay tax only 10% of interest settlement, and another 4% subsidy by government. The effective date from October 27, 2017 to December 31,2018.