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A query was raised regarding whether withholdings from a rental payment that has not yet been made must be declared using Form 115. The Directorate General for Tax Regulations (DGT) ruled that the obligation to withhold only arises once the income is actually paid or settled.
Taxpayers must ensure that withholdings are only reported in Form 115 once the actual payment of the rent has taken place, preventing premature reporting of unpaid liabilities.
The tax team reviews your specific situation.
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