Every resident, whether or not a taxpayer according to this Law, and every permanent establishment of a non-resident in the Kingdom which pays an amount to a non-resident from a source in the Kingdom shall withhold tax from the paid amount according to the following rates:

1. Rent: 5%.

2. Royalty or proceeds: 15%.

3. Management fees: 20%.

4. Payments for airline tickets, air or sea freight: 5%.

5. Payments for international telecommunication services: 5%.

6. Any other payments specified in the Regulations, provided that the tax rate does not exceed 15%.

In case of amounts paid by a natural person, the conditions for withholding stipulated under this Article shall apply to the payments pertaining to his activity.

A person withholding tax under this Article shall comply with the following:

1. Registering with the Department and paying the amount withheld to the Department within the first 10 days of the month following the month of payment to the beneficiary.

2. Providing the beneficiary with a certificate stating the amount paid to him and the value of the withheld tax.

3. Providing the Department, at the end of the taxable year, with the beneficiary's name, address, and registration number (identification number), if available, along with any other information the Department may require.

4. Maintaining the records required to prove the accuracy of the withheld tax as specified by the Regulations.

The person responsible for withholding tax under this Article is personally liable to pay the unpaid tax and any delay fines resulting therefrom in accordance with Article 77(a) of this Law, if any of the following cases applies to him:

1. If he fails to withhold tax as required.

2. If he withholds tax, but fails to pay the tax to the Department as required.

3. If he fails to report withholding statements to the Department as stipulated under subparagraph (3) of paragraph (b) of this Article.

In addition to what is stated in paragraph (b) of this Article, if tax is not withheld in accordance with the provisions of this Article, the beneficiary remains indebted to the Department for the amount of tax and the Department may recover it from him, or his agent or sponsor.

Without prejudice to paragraphs (f) and (g) of this Article, if an amount is paid to a non-resident and tax is withheld from him in accordance with the provisions of this Article, said tax shall be final, taking into consideration that no further tax shall be imposed on the income from which the tax was withheld, and that the amounts paid as tax in accordance with this Article is not refunded.

If the amount referred to in this Article is paid to a non-resident who conducts business in the Kingdom through a permanent establishment, and the amount paid is directly connected with the business of the establishment, such amount shall be calculated in determining the tax base of the non-resident.

If tax is withheld for an amount paid to a taxpayer which is included in its tax base, the withheld tax shall be deducted from the tax due on the taxpayer against the tax base.

For the purposes of this Article and Article 5 of this Law, services shall mean any work performed for a compensation, except for the purchase and sale of goods or any other properties.