withholding tax

Definitions

Accounting

  • noun a tax which removes money from interest or dividends before they are paid to the investor, usually applied to non-resident investors

Commerce

  • noun an amount deducted from a person’s income which is an advance payment of tax owed (such as PAYE)
  • noun income tax deducted from the pay cheque of an employee before they are paid

Economics

  • noun a tax levied on interest or dividends before they are paid to the investor (usually applied to non-resident investors). Such tax may be reclaimed under a double taxation agreement.
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