Tax withholding on payments to partners requires firms to deduct tax when crediting or paying partner sums. Firms paying sums to partners that are in the nature of salary, remuneration, commission, bonus or interest must deduct income-tax at the time of credit to the partner's account or at payment, whichever is earlier, at the specified withholding rate. No deduction is required where the aggregate sums credited or paid to a partner in a financial year do not exceed the stated exemption threshold.