The interest which the shareholders of the New Company have to pay to the Lender is subject to Income Tax at the rate of 10%. The Law on Tax also requires that a tax payer has the duty to calculate and withhold tax payable before paying interest in order to remit such money to the authority. Therefore, before paying interest to the Lender, the shareholders of the New Company must withhold tax at the rate of 10% of the interest and submit the tax declaration within 10 days from the date when the interest is paid in order to remit said Income Tax to the authority.