Under the Finance Act 2021, the withholding tax deducted from any interest payment to Unit Trusts and paid to the tax authority (the tax must be paid as a condition for this provision to apply) will now become the final tax on such income. In other words, interest payments to Unit Trusts will now the taxable at a maximum rate of 10% withholding tax, as long as the withholding tax thus deducted, has been paid to the tax authority.
For further enquiries, discussion, advisory or help around complying with these new laws, please send us an email via clients@vi-m.com. You will be able to access all our explanatory write-ups on each of the major changes to the laws, brought about by the Finance Act 2021 and the practical ways in which they will affect taxpayers going forward, under our website group link – https://www.vi-m/category/Finance-Act-2021.