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 Under the Russia-U.S. treaty, all interest income is exempt from U.S. withholding tax. Martin Sullivan, Forbes, 7 Mar. 2022 The move will enable investors to avoid a new withholding tax on dividends, which is positive, but Shell is seeking more than just a favorable tax environment. David Trainer, Forbes, 21 Dec. 2021 The Anglo-Dutch firm has been in a long-running tussle with the Dutch authorities over the country's 15% dividend withholding tax, which Shell sought to avoid paying with its two share classes. Reuters, CNN, 15 Nov. 2021 Growers and dealers who circumvent the legal system could be withholding tax money from the public, polluting the environment and endangering public health with products that have not been vetted. Rachel Swan, San Francisco Chronicle, 1 Oct. 2021 The payroll withholding tax in Strongsville is 2 percent. Bob Sandrick, cleveland, 21 Sep. 2021 Iowa lawmakers are mulling withholding tax credits for social media companies that censor users. Bryan Schott, The Salt Lake Tribune, 21 Sep. 2021 Failure to comply could subject these FFIs to a 30 percent withholding tax on U.S.-sourced investment income. Boris Ryvkin, National Review, 8 Sep. 2021 In the subject to tax rule, there could potentially be an additional 7.5 percent to 9 percent of withholding tax or some additional tax. Tax Notes Staff, Forbes, 14 Sep. 2021 See More

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.

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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Dictionary Entries Near withholding tax

withhold

withholding tax

with hopes of

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Statistics for withholding tax

Last Updated

3 Apr 2022

Cite this Entry

“Withholding tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/withholding%20tax. Accessed 16 May. 2022.

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More Definitions for withholding 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

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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