(11/2006)
Royal Decree No. 461 was issued on 22 June 2006, to extend the time period for the reduction of the personal income tax from 2 years (Royal Decree No. 405 issued on 5 August 2002) to 4 years. This Royal Decree No. 461 is retroactive to 16 August 2002. Therefore expatriates who have worked for an ROH in the tax year 2002 to 2006 should be eligible to be taxed at 15% of gross income. Management is advised to review the tax compliance position of ROH expatriates and may consider submitting claims for tax refunds if the expat has filed and paid tax using the standard progressive tax rates after the initial two year period.
