This statement by the IRD states that as per the newly enforced Tax Administration Law (“TAL”) Section 40 (a) and Section 49(a), if the party responsible for deducting the relevant income tax under the title of “salary” does not deduct and make payment within the stipulated deadline, the amount of tax payable will be subject to additional interest. The exact additional interest percentage will be announced by the IRD.
As such, the IRD has issued the statement to the Township IRDs to collect the PIT on a monthly basis, within 10 days after the end of each month.
Therefore, in order for taxpayers to remain compliant with the new practice outlined by the TAL, we would like to stress that the taxpayers can no longer choose between quarterly or annual PIT payments. PIT payments and filings are now required on a monthly basis with a strict deadline of 10 days after the end of each month. Failure to comply within the stipulated deadline will be subject to penalty and interest, which will be levied on the each day that the taxpayer goes beyond the deadline.