withholding tax


noun

that part of an employee's tax liability withheld by the employer from wages or salary and paid directly to the government.
Also called withhold·ing.

Origin of withholding tax

First recorded in 1940–45

OTHER WORDS FROM withholding tax

un·with·hold·ing, adjective

British Dictionary definitions for withholding tax

withholding tax

noun

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
US a portion of an employee's tax liability paid directly to the government by the employer

Cultural definitions for withholding tax

withholding tax

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