DEFENCE TAX FOR RENT PAYMENTS

The Parliament recently amended the legislation governing the Defence tax for rent allowing the tax to be paid in two installments per year, instead of monthly.

This contribution is 3% on 75% of the rent.

Based on the current legislation, persons who pay rent have an obligation to withhold from the amount of the rent defense tax and to pay it to the Tax Department within the month following the month in which the withholding is made.

With the said amendment, the defense tax deducted from the rents will be payable in two half-monthly installments instead of the earlier monthly payment.

This initiative resulted from the recognition of the fact that the obligation to withhold and pay the contribution every month to the Tax Department created additional administrative costs for businesses. By simplifying the payment process in six-monthly installments, the aim is to reduce the administrative burden for businesses and facilitate compliance with payment obligations.