withholding tax

noun

Definition of withholding tax

: a deduction (as from wages, fees, or dividends) levied at a source of income as advance payment on income tax

Examples of withholding tax in a Sentence

Recent Examples on the Web For individuals making more than $400,000 per year, Biden proposes a 12.4 percent payroll withholding tax specifically for Social Security. Michael Taylor, ExpressNews.com, "Taylor: If Trump and Biden won’t talk taxes, I will," 28 Oct. 2020 In the case of Unilever, Mr. Snels said the exit fees would apply because the UK does not have a withholding tax on dividends. Daniel Tenreiro, National Review, "The Capital Note: Lockdowns & Lumber," 18 Aug. 2020 Often workers in the gig economy — freelancers, the self-employed, investors, retirees and others — may need to make estimated payments because a substantial part of their income is not subject to withholding tax. Susan Tompor, Detroit Free Press, "July 15 tax return deadline is right around the corner: What to know," 3 July 2020 The withholding tax on banks’ commercial papers went up to 15% from 10%. Tugce Ozsoy, Bloomberg.com, "Turkey Raises Tax on Some FX Purchases to Aid Virus Battle," 26 May 2020 And there could be Constitutional issues involved if an employer is withholding tax from wages earned by an employee for a city in which the employee neither works nor resides. Robert Higgs, cleveland, "Ohioans working at home due to coronavirus crisis still paying income taxes as if they’re in the office," 21 Apr. 2020 However, these digital businesses typically don't withhold taxes for workers. Russ Wiles, azcentral, "Work in the gig economy? Here's what you need to know about your taxes," 23 Feb. 2020 Thus, how diligent Riot is in withholding taxes from its players is something Gordon questions. Washington Post, "For esports players, the tax man cometh," 15 Jan. 2020 In 2012, India retrospectively changed its tax law to pursue a $2.2 billion withholding tax notice against the U.K. firm. Andy Mukherjee | Bloomberg, Washington Post, "India Imperils Foreign Investment With Telecom Cash Grab," 13 Nov. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'withholding tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of withholding tax

1940, in the meaning defined above

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Time Traveler for withholding tax

Time Traveler

The first known use of withholding tax was in 1940

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Cite this Entry

“Withholding tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/withholding%20tax. Accessed 19 Jan. 2021.

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More Definitions for withholding tax

withholding tax

noun

English Language Learners Definition of withholding tax

US : money that is taken from a person's pay and given directly to the government as income tax

withholding tax

noun
with·​hold·​ing tax

Legal Definition of withholding tax

: a deduction (as from wages, fees, or dividends) levied at a source of income as advance payment on income tax

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More from Merriam-Webster on withholding tax

Thesaurus: All synonyms and antonyms for withholding tax

Britannica English: Translation of withholding tax for Arabic Speakers

Britannica.com: Encyclopedia article about withholding tax

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