Withholding Tax
1. Income tax withheld from employees' wages and paid directly to the government by the employer.
2. A tax levied on income (interest and dividends) from securities owned by a non-resident. Investopedia Says:
1. The amount withheld is a credit against the income taxes the employee must pay during the year.
2. Tax is deducted not only from dividends, but from other income paid to non-residents of a country. Related Terms:
After-Tax Income
Dividend
Income Tax
Internal Revenue Service - IRS
Tax Treaty
W-2 Form
W-4 Form
Withholding
Withholding Allowance |