On 2 April 2015, the Union Tax Law of 2015 was enacted into law. Introducing new tax rates and other refinements to the 2014 version, the law will have retroactive effect from 1 April 2015.

The major changes include:

  • Commercial Tax (“CT”) –shorter list of CT exempt service activities; new CT rate of 3% on construction and sale of buildings; increase in CT rates on certain items
  • Personal Income Tax (“PIT”)– salary of non-resident foreigners now subject to graduated rate of 0-25%,instead of the flat rate of 35%; new deductions for parents living with thetaxpayer; higher personal, spouse and dependent deductions
  • Corporate Income Tax (“CIT”) –  rate of CIT for non-residents reduced from 35% to 25%
  • Capital Gains Tax (“CGT”) – rate of CGT for non-residents reduced from 40% to 10%
  • Income from property – rate of 10% CIT on income from lease of land, rental of building, rental of apartment.

We compare below the provisions of the 2014 and the 2015 Tax Laws:

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