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 ?
The exceptional item refers to a payment made on 3 October 2000 of E113million to the Irish revenue Commissioners in full and final settlement of deposit interest retention tax (DIRT), including interest and penalties for the period April 1986 to April 1999.
AIB") [NYSE: AIB;AIBPR:FMBPR] The PAC of Dail Eireann (Irish Parliament) yesterday published the results of its inquiry into the administration of Deposit Interest Retention Tax (DIRT) and related matters during the period 1986 to 1998.
Deposit Interest Retention Tax (DIRT) - a levy on savings - will also be increased again from 33% to 37%
Deposit Interest Retention Tax will be at the higher rate of 30%, an increase of 3%.
Other tax hikes will include motor tax, a 3% hike in deposit interest retention tax and a rise among the lowest bands of the Universal Social Charge.
The shorter period allows up to EUR480 in interest each year, free of Deposit Income Retention Tax - better known in the banking trade as DIRT - and the five-year plan permits EUR635.
That position might have been even better but for an exceptional cost of EUR9 million incurred by on-going investigations into the Deposit Income Retention Tax (DIRT) affair that embroiled most of the country's main banks and financial institutions, as well as a restructuring programme.
In a joint statement, Henry Saville, President of the Institute of Chartered Accounts in Ireland, and Martin Kent and Bernadette McGrory-Farrell, his counterparts in the ACCA Ireland and CPA Ireland, said the Deposit Income Retention Tax scandal had done nothing for Ireland's reputation as a good place in which to do business.
The presenter is not liable for the Irish deposit interest retention tax (DIRT) because he pays tax in England.
Legislation to permit the seizure of long-dormant amounts of bank-held cash was approved last year, and diversion of the resources to the less-well-off was a central recommendation of the Dublin parliament's Public Accounts Committee, which earlier investigated the Deposit Income Retention Tax (DIRT) scandal with such success.