Definition of withholding tax in English:

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withholding tax

noun

A tax deducted at source, especially one levied by some countries on interest or dividends paid to a person resident outside that country: royalties are usually subject to withholding taxes [mass noun]: abolition of withholding tax
More example sentences
  • In case of a withholding tax part of the interest payment is not paid to the investor, but is directly transferred to the government.
  • The recipient of a dividend from an Irish resident company is liable to income tax on the gross amount of the dividend but he is entitled to a tax credit for the dividend withholding tax withheld by the company.
  • If the shareholder is resident in Ireland, the company must also deduct dividend withholding tax from the dividend and pay that tax to the Revenue.

For editors and proofreaders

Line breaks: with¦hold|ing tax

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