Business, Legal & Accounting Glossary
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.
The withholding tax will not apply to individual investors.
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This glossary post was last updated: 6th February, 2020