Final Tax

A type of tax obligation that is withheld and paid once, thereby fully discharging the taxpayer’s liability for the specific income. After its payment, no annual tax returns are filed for that income, and no additional taxation is due. Examples of income subject to final tax include dividends and liquidation shares, rental income, interest income on bank accounts received by local individuals, taxable monetary and non-monetary prizes from games, competitions, and contests not provided by an employer or principal, and certain types of non-employment income under specific conditions. The tax amount is determined by law, with rates varying depending on the specific source of income.