withholding tax

noun

1. that part of an employee's tax liability withheld by the employer from wages or salary and paid directly to the government.

withholding tax

noun

1. tax deducted at source from income, esp from dividends, paid to nonresidents of a country, which may be reclaimed if a double-taxation agreement exists between the country in which the income is paid and the country of residence of the recipient
2. a portion of an employee's tax liability paid directly to the government by the employer

withholding tax

1. The tax withheld (or deducted) directly from one's paycheck.

Other Words From

• unwith·holding adjective

Word History and Origins

Origin of withholding tax¹

First recorded in 1940–45

Example Sentences

The government has agreed a bill, pending approval, reducing the withholding tax buyers will pay to 15% to make the bond more attractive relative to savings accounts, from 30% on other Belgian retail bonds.

From Reuters

They also approved a new withholding tax for digital content creators.

From Reuters

Its impact is diminished because awards are subject to a federal withholding tax, meaning that 37 percent of the dollars appropriated to this program go right back to the U.S.

From Washington Post

In several states, including North Carolina, Ohio, and New York, public university systems refer patients to other state agencies for legal action or withholding tax refunds.

From Salon

McGuinness said next year she would propose streamlining the system of withholding tax on investments that investors have outside their home state in the bloc.

From Reuters