Definition of withholding tax in English:

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withholding tax

Pronunciation: /wiT͟HˈhōldiNG ˌtaks/


The amount of an employee’s pay withheld by the employer and sent directly to the government as partial payment of income tax.
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

Syllabification: with·hold·ing tax

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