Withholding tax - Financial definition
Financial acronyms
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Concise definition of the term withholding tax
Withholding 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.
Comprehensive definition of the term withholding tax
Many jurisdictions 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.