Regulatory Alerts2012-03-22
Deduction of Income Tax and Commissions in Foreign Currency
The Supervisor of Banks issued this directive to regulate the handling of tax deductions and commissions on foreign currency deposits. The regulation mandates that banks must allow customers to pay taxes and commissions in local currency unless the customer explicitly authorizes deductions from their foreign currency account. This requirement ensures that mandatory deductions are not made from foreign currency deposits when equivalent charges could be applied to a local currency account.
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