Where any of the taxable incomes itemized in Article 88 of the Act is exemptible from income tax under any Subparagraph of Paragraph One, Article 4 of the Act, no income tax withholding shall be made in respect of such income. However, if any of such incomes is subject to fixed-amount tax exemption, the portion of the amount in such income exceeding the taxation threshold shall still be subject to tax withholding.
The interest income derived by a banking institution from money-lending business and the commission income derived by a profit-seeking enterprise from issuing uniform invoices, leasing business and/or the royalty income under the law shall all be exempted from income tax withholding.