withholding tax
noun
: 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 an amendment to the federal law effective Jan. 3, the social security withholding tax of 5.85 percent is being levied against the first $13,200 of salaries and wages.
—
Bernice Hoffman, Twin Cities, 7 Feb. 2025
Under the Foreign Account Tax Compliance Act (FATCA), Washington requires foreign financial institutions to disclose their American clients’ financial information to the U.S. Treasury and imposes a 30 percent withholding tax on certain payments to foreign financial institutions that don’t comply.
—Nicholas Shaxson, Foreign Affairs, 13 Feb. 2018
Palestinian leaders say its ability to exercise effective governance has been effectively blocked by Israeli restrictions, which have included withholding tax revenues due under the Oslo accords.
—Ali Sawafta, The Christian Science Monitor, 26 Feb. 2024
The legislation lifts the current $800 million limit on the total amount of capture income and withholding tax revenues to $1.6 billion.
—Detroit Free Press, 18 July 2023
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Bernice Hoffman, Twin Cities, 7 Feb. 2025
Under the Foreign Account Tax Compliance Act (FATCA), Washington requires foreign financial institutions to disclose their American clients’ financial information to the U.S. Treasury and imposes a 30 percent withholding tax on certain payments to foreign financial institutions that don’t comply.
—Nicholas Shaxson, Foreign Affairs, 13 Feb. 2018
Palestinian leaders say its ability to exercise effective governance has been effectively blocked by Israeli restrictions, which have included withholding tax revenues due under the Oslo accords.
—Ali Sawafta, The Christian Science Monitor, 26 Feb. 2024
The legislation lifts the current $800 million limit on the total amount of capture income and withholding tax revenues to $1.6 billion.
—Detroit Free Press, 18 July 2023
See All Example Sentences for withholding tax
Cite this Entry
“Withholding tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/withholding%20tax. Accessed 28 Feb. 2025.
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