On 1 May 2023, the Ministry of Planning and Finance ("MOPF") issued new set of rules regarding offshore remittances. These rules require all taxpayers including entrepreneurs, companies, organisations and individuals to provide tax documentation such as tax payment receipts or tax exemption letters issued by the Internal Revenue Department ("IRD") and tax clearance certificates, to the Authorised Dealer Banks when remitting offshore payments exceeding US$10,000 per transaction.
The taxpayers must now make Withholding Tax or Personal Income Tax payment first with IRD before making offshore remittances. This is a matter of question since this particular requirement conflicts with the Income Tax Regulations and Withholding Tax Notification 47/2018. Approval from the Foreign Exchange Supervisory Committee (FESC) is still required for any offshore remittances.