Income Tax Act 2007 section 888DA

Payments of interest by a QAHC

Section 888DA exempts qualifying asset holding companies (QAHCs) from the requirement to deduct income tax at source when making interest payments.

  • A QAHC is not required to withhold income tax when paying interest to any recipient
  • The exemption applies regardless of how the interest arises — whether on loans, bonds or any other arrangement
  • A QAHC is a qualifying asset holding company as defined in Schedule 2 to the Finance Act 2022
  • This overrides the general duty under section 874, which normally requires income tax to be deducted from certain payments of yearly interest

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