Our company needs to pay deposit in amount of 30% to supplier regarding the maintenance services to machinery and tool equipment. Do we need to deduct the withholding tax when we will make the payment for this deposit?
Panwa: Yes, the company needs to deduct the withholding tax by 3%.
The payment of deposit for maintenance services to machinery and tools equipment is considered as the assessable income due to the provision of services for all amount, in accordance with the Revenue Department Order no. Por 73/2541.
The payer shall deduct the withholding tax in amount of 3% every time when make the payment.