withholding tax

American  

noun

1. that part of an employee's tax liability withheld by the employer from wages or salary and paid directly to the government.

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withholding tax British  

noun

1. tax deducted at source from income, esp from dividends, paid to nonresidents of a country, which may be reclaimed if a double-taxation agreement exists between the country in which the income is paid and the country of residence of the recipient

2. a portion of an employee's tax liability paid directly to the government by the employer

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withholding tax Cultural  

1. The tax withheld (or deducted) directly from one's paycheck.

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Other Word Forms

• unwithholding adjective

Etymology

Origin of withholding tax

First recorded in 1940–45

Example Sentences

This tactic allowed both parties to claim rebates on withholding tax - a levy which had only been paid once, when the dividend was issued.

From BBC

The schemes typically involve the rapid sale of large volumes of shares from one investor to another immediately before the payment of a dividend, enabling duplicated claims of the withholding tax.

From BBC

The government has agreed a bill, pending approval, reducing the withholding tax buyers will pay to 15% to make the bond more attractive relative to savings accounts, from 30% on other Belgian retail bonds.

From Reuters

They also approved a new withholding tax for digital content creators.

From Reuters

Its impact is diminished because awards are subject to a federal withholding tax, meaning that 37 percent of the dollars appropriated to this program go right back to the U.S.

From Washington Post