Definition of withholding tax in English:

withholding tax


  • A tax deducted at source, especially one levied by some countries on interest or dividends paid to a person resident outside that country:

    ‘royalties are usually subject to withholding taxes’
    [mass noun] ‘abolition of withholding tax’
    • ‘What about resident withholding tax on interest and dividends?’
    • ‘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.’
    • ‘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.’
    • ‘Instead, they will charge foreign residents a withholding tax on bank deposits.’
    • ‘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 tax reform plan we endorse is revenue neutral, collecting as much federal tax revenue as the current income tax code, including payroll withholding taxes.’
    • ‘The individual can then credit the withholding tax deducted against their total tax liability for that particular tax year.’
    • ‘This year's row is over abolition of the withholding tax on foreign dividends.’
    • ‘The main taxes are income tax, corporation tax and withholding tax.’
    • ‘No capital gains or income withholding taxes are imposed on any business.’
    • ‘Foreign tax authorities generally impose a withholding tax on the royalty income of non-residents.’
    • ‘In case of a withholding tax part of the interest payment is not paid to the investor, but is directly transferred to the government.’
    • ‘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 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.’
    • ‘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.’
    • ‘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.’
    • ‘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).’
    • ‘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.’


withholding tax