Define: Withholding Tax

Business, Legal & Accounting Glossary

Definition: Withholding Tax


Quick Summary of Withholding Tax


Tax deducted at the source from dividends or other income paid to non-residents of a country.



What is the dictionary definition of Withholding Tax?

Dictionary Definition


A tax levied by a country of source on income paid, usually on dividends remitted to the home country of the firm operating in a foreign country.

Withholding Tax (noun) is tax deducted at the source from dividends or other income paid to non-residents of a country.

When there is a double taxation agreement between the country is which the income is paid and the country is which the recipient is based, this tax can be reclaimed.


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Examples of Withholding Tax in a sentence


The withholding tax will not apply to individual investors.


Synonyms For Withholding Tax


withholding taxes, deduction at source, tax deduction, retention, tax at source


Cite Term


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https://payrollheaven.com/define/withholding-tax/
Modern Language Association (MLA):
Withholding Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 07, 2020 https://payrollheaven.com/define/withholding-tax/.
Chicago Manual of Style (CMS):
Withholding Tax. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/withholding-tax/ (accessed: April 07, 2020).
American Psychological Association (APA):
Withholding Tax. PayrollHeaven.com. Retrieved April 07, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/withholding-tax/

Definition Sources


Definitions for Withholding Tax are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February, 2020