In essence, the Amended Regulations:

(a) clarify that withholding tax on dividends is applicable only on the dividends distributed by joint stock companies and mutual funds and not by limited liability companies;

(b) prescribe the category of payments which are not considered as service payments subject to withholding tax;

(c) introduce new provisions on the deductibility of donations;

(d) replace the provisions of tax exemptions, and therefore restrict the tax exemption to (i) manufacturing companies only and (ii) a period of five years; and

(e) elaborate on the conditions required to be met by small and medium sized enterprises to qualify for a lower tax rate.

Other notable changes by the Amended Regulations include the introduction of:

(a) a mechanism for issuing tax cards on taxpayers' request;