The Revenue Department has provided several tax-relief measures in light of the COVID-19 pandemic. In particular, the rate of withholding tax on the payment of certain taxable income from 1 October 2020 to 31 December 2021 has been reduced from 3% to 2%, provided that the payment of assessable income is made through the e-Withholding Tax system only. Further, from January 2021, the deadlines for the filing of personal income tax, corporate income tax, withholding tax, VAT, and specific business tax returns have been extended for eight days from their relevant due dates (provided that the filing of all such tax forms must be submitted through the online system only).
In relation to property transaction fees, the Ministry of Interior has provided additional tax relief to reduce registration fees for real estate transfers from 2% to 0.01% and real estate mortgage registration fees from 1% to 0.01% for certain types of properties. This measure is effective from 3 February 2021 until 31 December 2021.
