Interpretative Circular 14, issued by the Tax Department on November 14 2017, clarifies the application of Article 5(2) (g) of the Income Tax Law. The law provides for a deemed benefit to be assessed on any drawings, loan or other financial facilities granted by a company to a non-resident director or shareholder, or their spouse or close relatives. This provision, together with a corresponding provision for resident individuals, was introduced by the Income Tax Amendment Law of 2011 and took effect on December 1 2012.
Taxation of Deemed Benefits on Loans and Advances to Directors and Shareholders
