withholding tax(redirected from With-holding tax)
Also found in: Dictionary, Thesaurus, Legal, Wikipedia.
A tax levied by a country of source on income paid, usually on <> remitted to the home country of the firm operating in a foreign country.
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.