Define: Withholding Tax

UK Accounting Glossary

Definition: Withholding Tax

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What is the dictionary definition of Withholding Tax?

Dictionary Definition

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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