withholding tax

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Withholding tax

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.

Payroll Tax

A tax in which an employer retains a certain percentage of an employee's wages or salary and gives it to the IRS or tax agency instead of the employee. This reduces or eliminates the possibility that the employee will spend his/her tax liability, and give the government cash flow to fund certain operations. See also: Withholding.

withholding tax

TAX deducted at source from INTEREST or DIVIDEND payments. Withholding taxes are often levied by a country upon interest and dividends paid by a domestic company to non-residents. It is a means of taxing cash flows from the company before such monies move out of their jurisdiction. Such taxes are levied in order to encourage investment at home and raise money for the government. Looked at more broadly from an international community perspective witholding taxes are harmful because they reduce the free flow of international investment and distort the geographical location of such investment. See DOUBLE TAXATION.

withholding tax

a TAX levied by a government on the income (profits, interest, etc.) earned on a foreign portfolio or direct investment by its citizens and companies. Such a tax is levied in order to encourage investment at home and to raise money for the government. Looked at more broadly from an international community perspective, a withholding tax is harmful because it reduces the free flow of international investment and distorts the geographical location of such investment. The EUROPEAN UNION is currently considering introducing a withholding tax, which the UK, as an important centre for the EUROBOND market and a substantial recipient of FOREIGN INVESTMENT, is opposing because of the adverse effect this will have on capital inflows.
References in periodicals archive ?
Thanks to the payroll withholding plan, the payoff from a successful fundraising appeal would be a steady stream of income--$52 a year from each donor--that would roll in automatically, steadily, dependably.
At its core, Symmetry is a software development firm with a high level of expertise in payroll withholding taxes.
Better policies to help them would be cash refunds, carry forwards or the use of payroll withholding tax credits for R&D related wages.
In Product: Finally, a web-based solution for large employers to go paperless on payroll withholding forms.
An expert in payroll withholding tax solutions for the internet and corporate intranets, Symmetry Software, has announced the launch of the second version of its well known PaycheckCity app for Android as well as Apple iOS devices.
Together, through payroll withholding, payroll professionals collect and contribute 64.
Together, through the payroll withholding system, these wage earners contribute, collect, report and deposit approximately $1.
ElderCarePay calculates Federal and state payroll withholding taxes (and supports all 50 states).
January paychecks will be calculated with an increased Yonkers payroll withholding rate (about double the 2005 rate.
The states with a decrease in payroll withholding taxes this year are California, Colorado, Kentucky, Maine, Massachusetts, Michigan, Minnesota, New Mexico, New York, North Dakota, Ohio, Oregon and Washington, D.
Tax experts and payroll departments are advising employees to update federal and state payroll withholding tax settings for 2006.