Withholding tax (WHT) is a common method used by governments to collect tax on income earned by non-residents within their country. It ensures that taxes are paid at the source of the income — meaning the payer deducts and remits the tax directly to the tax authority.
How it works on Afranga:
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Borrowers pay interest to investors on funded loans.
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They are also responsible for calculating, deducting, and remitting any applicable WHT on this interest income.
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This helps ensure that interest earned across borders is properly taxed according to local laws.
Note: The WHT rate depends on the borrower’s country and may vary across investments.
For more information on how WHT affects your returns, check out our dedicate tax article and consult your local tax advisor. If you have further questions, feel free to contact us at support@afranga.com.