Definition of withholding tax in US English:

withholding tax


  • The amount of an employee's pay withheld by the employer and sent directly to the government as partial payment of income tax.

    ‘royalties are usually subject to withholding taxes’
    mass noun ‘abolition of withholding tax’
    • ‘This year's row is over abolition of the withholding tax on foreign dividends.’
    • ‘The existence of withholding taxes on interest and royalties, as well as other features mentioned above, discriminates against cross-border investment and thus hinders the creation of a single market.’
    • ‘These include exemption from paying corporate tax, withholding tax on dividends and tax on interest or royalties and capital gains tax.’
    • ‘Since the withholding tax levied by the Spanish tax authorities is 15% on dividends, whereas the UK rate is only 10%, how can I reclaim the difference?’
    • ‘The tenant or local agent is obliged to deduct 25 per cent withholding tax from rental income and send it to the tax office (financas).’
    • ‘The tax reform plan we endorse is revenue neutral, collecting as much federal tax revenue as the current income tax code, including payroll withholding taxes.’
    • ‘No capital gains or income withholding taxes are imposed on any business.’
    • ‘The individual can then credit the withholding tax deducted against their total tax liability for that particular tax year.’
    • ‘Instead, they will charge foreign residents a withholding tax on bank deposits.’
    • ‘On the other hand, if the corporate assets are sold, then the company will be subject to taxation and withholding tax could apply on the distribution of dividends to non-resident shareholders.’
    • ‘The main taxes are income tax, corporation tax and withholding tax.’
    • ‘He said the fact that the British tax authorities do not charge a withholding tax on capital gains meant that builders could hide the money from the Irish Revenue.’
    • ‘In case of a withholding tax part of the interest payment is not paid to the investor, but is directly transferred to the government.’
    • ‘If the shareholder is resident in Ireland, the company must also deduct dividend withholding tax from the dividend and pay that tax to the Revenue.’
    • ‘This is why rulers institute withholding taxes, social security taxes, gasoline taxes, payroll taxes, sales taxes, value added taxes, etc.’
    • ‘As you might be aware, the Income Tax Act requires withholding tax to be deducted from all payments to all entertainers and sportsmen and women who are not resident in Zambia.’
    • ‘Instead, they will impose a withholding tax on undisclosed interest payments and split the proceeds 25: 75 with the interest recipient's home state.’
    • ‘The recipient of a dividend from an Irish resident company is liable to income tax on the gross amount of the dividend but he is entitled to a tax credit for the dividend withholding tax withheld by the company.’
    • ‘What about resident withholding tax on interest and dividends?’
    • ‘Foreign tax authorities generally impose a withholding tax on the royalty income of non-residents.’


withholding tax

/wiT͟HˈhōldiNG ˌtaks//wɪðˈhoʊldɪŋ ˌtæks/