New 3% Withholding Tax on Specified Services | KPMG | JM

New 3% Withholding Tax on Specified Services

New 3% Withholding Tax on Specified Services

As a further measure to broaden the tax base and improve revenue collection, the government has implemented a new 3% withholding tax on fees for specified services rendered to certain government entities, statutory bodies and large taxpayers.

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Withholding Tax
  • Large taxpayers are now required to withhold tax at 3% on fees of $50,000 or more paid to a variety of service providers including accountants, lawyers, engineers, caterers, entertainers, janitors, as well as those providing rentals of motor vehicles/equipment and those providing transportation, haulage or tours. 
  • Penalty for failure to withhold can be up to 50% of the tax due.
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The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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