Investment Income

A withholding tax is applied to dividend and interest income received. Dividends are subject to a 12.5% withholding tax if the dividend is received by Resident individuals. Non-residents are subject to a 27% withholding tax on dividends.

Royalties are payable with a withholding tax of 22.5% deducted if paid to non residents or 15% if paid to residents.

If the interest is derived from abroad, the resident taxpayer has the option to:

1. Pay a separate final tax at the rate of 12.5% in which case there is no right to a credit for taxes paid abroad; or
2. Include it in his taxable income so that it is taxed at the normal progressive rates. This option allows for the credit of taxes paid abroad.