Withholding Tax

[mneilson]

Better and efficient tax collection boosts the spending and purchasing power of a sovereign country. To strengthen economy, various types of tax are collected. But what is withholding tax?

 

[richardm1964]

Withholding tax is a "tax levied on income"s (interest and dividends) from securities owned by a non-resident. In case of Income tax, the tax withheld from employee's wages and paid directly to the government fund by the employer.