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.
Payroll Mate automatically calculates Oregon payroll withholding using the computer formula.
Payroll Mate Payroll Software makes it easy for employers, payroll service providers, accountants and payroll staffs to comply with the new IRS payroll withholding changes introduced by the Payroll Tax Cut Continuation Act of 2011.
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.
Through the payroll withholding system, payroll professionals collect 71.
Tax experts and payroll departments are advising employees to update federal and state payroll withholding tax settings for 2006.
The online "Getting Paid In America" survey by the APA asked, "how certain are you that your payroll withholding and the net amount of your paycheck are correct each payday?
Employees' payroll withholdings (trust fund taxes) held for the exclusive use of the government have no time limits restricting their priority status.
Upon examining your payroll withholdings, opt to reduce them to be in line with your net tax liability, which will put more money in your pocket each pay period.
It is encouraging to learn that survey participants are certain that their payroll withholdings and the net amount of their paycheck are correct each payday," said Larry Dunivan, senior executive vice president, products & technology, Ceridian.