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Withholding Tax
(redirected from Withholding taxes)

   Also found in: Dictionary/thesaurus, Legal, Wikipedia 0.01 sec.
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.


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The IRS is concerned that some taxpayers have used strategies to minimize withholding taxes, such as securities lending, payments to foreign vendors, and potential use of total return swaps.
These significant new withholding taxes on hybrid entities may compel some U.
Withholding taxes are part of tax system ever since imposition of direct taxes.
 
 
 
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