- 10 Marks
PT – May 2021 – L2 – Q5a – Withholding Tax Administration
Explain the withholding tax rates and treatment for rental income for residential and non-residential premises.
Question
A resident person who makes a payment to another resident person in respect of the rental of residential or non-residential premises is required to withhold tax in accordance with the Income Tax Act, 2015 (Act 896) as amended.
Required:
i) State the taxation principle applicable to rental income and the relevant rates. (5 marks)
ii) Given i) above, how will you treat this transaction, where a resident person makes a payment to another resident person conducting a business of sale or renting of residential or non-residential premises?
Find Related Questions by Tags, levels, etc.
- Tags: Non-Residential Premises, Rental Income, Residential, Withholding Tax
- Level: Level 2
- Topic: Withholding Tax Administration
- Series: MAY 2021
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