Confusion continues over the implementation of WHT View(s):Commercial banks are deducting the 5 per cent With Holding Tax (WHT) from the interest paid to any person on any rupee or foreign currency deposit including the Non-Resident Foreign Currency accounts in accordance with the Inland Revenue Act (IRA), Finance Ministry sources confirmed. Under the new Foreign Exchange Act No 12 of 2017, all existing Non-Resident Foreign Currency Accounts (NRFC), Resident Foreign Currency Accounts (RFC), Resident Non-National Foreign Currency Accounts, Non-Resident Non-National Foreign Currency accounts have been re-designated as Personal Foreign Currency Accounts. Existing Foreign Exchange Earner Accounts (FEEA), Inward Remittance Distribution Accounts (IRDA) and Foreign Currency Accounts for Agents of Foreign Shipping Line or Airlines (FCAAF SAs) will be considered as Business Foreign Currency Accounts (BFCAs). Resident Guest Foreign Currency Accounts and Senior Foreign Nationals Special Accounts will remain as it is under the previous law, he revealed. Personal Foreign Currency Accounts (PFCAs) and Business Foreign Currency Accounts (BFCAs) could be opened and maintained as Current (but without cheque drawing facility), Savings or Term Deposit accounts in any designated foreign currency.

Source: Sunday Times August 04, 2018 19:32 UTC