What does withholding tax mean?
Definitions for withholding tax
with·hold·ing tax
This dictionary definitions page includes all the possible meanings, example usage and translations of the word withholding tax.
Princeton's WordNet
withholding tax, withholdingnoun
income tax withheld from employees' wages and paid directly to the government by the employer
Wiktionary
withholding taxnoun
A withholding, a tax withheld from employees' salary and paid to the government. The withheld amount is considered a credit in final taxation.
Wikipedia
withholding tax
Tax withholding, also known as tax retention, Pay-as-You-Go, Pay-as-You-Earn, Tax deduction at source or a Prélèvement à la source, is income tax paid to the government by the payer of the income rather than by the recipient of the income. The tax is thus withheld or deducted from the income due to the recipient. In most jurisdictions, tax withholding applies to employment income. Many jurisdictions also require withholding taxes on payments of interest or dividends. In most jurisdictions, there are additional tax withholding obligations if the recipient of the income is resident in a different jurisdiction, and in those circumstances withholding tax sometimes applies to royalties, rent or even the sale of real estate. Governments use tax withholding as a means to combat tax evasion, and sometimes impose additional tax withholding requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common. Typically the withheld tax is treated as a payment on account of the recipient's final tax liability, when the withholding is made in advance. It may be refunded if it is determined, when a tax return is filed, that the recipient's tax liability is less than the tax withheld, or additional tax may be due if it is determined that the recipient's tax liability is more than the tax withheld. In some cases, the withheld tax is treated as discharging the recipient's tax liability, and no tax return or additional tax is required. Such withholding is known as final withholding. The amount of tax withheld on income payments other than employment income is usually a fixed percentage. In the case of employment income, the amount of withheld tax is often based on an estimate of the employee's final tax liability, determined either by the employee or by the government.
ChatGPT
withholding tax
Withholding tax is a mandatory payment to the government by a payer of income to another party, who is the actual income earner. Such income includes wages, interest, dividends, royalties, or rent. The tax is withheld or deducted from the income earned by the recipient, at the source itself, and then paid directly to the government by the payer. It is a way for the government to ensure tax collection on various types of income. The amount withheld is a credit against the income taxes the income receiver must pay during the annual tax filing.
Wikidata
Withholding tax
A withholding tax, also called a retention tax, is a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government. In most jurisdictions, withholding tax applies to employment income. Many jurisdictions also require withholding tax on payments of interest or dividends. In most jurisdictions, there are additional withholding tax obligations if the recipient of the income is resident in a different jurisdiction, and in those circumstances withholding tax sometimes applies to royalties, rent or even the sale of real estate. Governments use withholding tax as a means to combat tax evasion, and sometimes impose additional withholding tax requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common. Typically the withholding tax is treated as a payment on account of the recipient's final tax liability. It may be refunded if it is determined, when a tax return is filed, that the recipient's tax liability to the government which received the withholding tax is less than the tax withheld, or additional tax may be due if it is determined that the recipient's tax liability is more than the withholding tax. In some cases the withholding tax is treated as discharging the recipient's tax liability, and no tax return or additional tax is required.
Matched Categories
Numerology
Chaldean Numerology
The numerical value of withholding tax in Chaldean Numerology is: 9
Pythagorean Numerology
The numerical value of withholding tax in Pythagorean Numerology is: 3
Translations for withholding tax
From our Multilingual Translation Dictionary
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"withholding tax." Definitions.net. STANDS4 LLC, 2024. Web. 25 Apr. 2024. <https://www.definitions.net/definition/withholding+tax>.
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