Last week, we started a discussion of the withholding taxes on the sale of property. This week we'll talk about withholding taxes if the seller is an individual, not a company.
The withholding tax is the amount withheld from the purchase price of a sale of property sale and paid to the land officer when the purchase is registered at the land office. It is the seller's income tax on the deal. These taxes are withheld and paid to the government before the seller receives his or her money.
And this is important because if you understand the taxes on a property deal you're involved in, you will be able to pick up errors in the calculations _ and there are lots of them.
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