Withholding Tax

What Does It Mean?
What Does Withholding Tax Mean?
1.  Income tax withheld from employees' wages and paid directly to the government by the employer.

2. A tax levied on income (interest and dividends) from securities owned by a non-resident.
Investopedia Says
Investopedia explains Withholding Tax
1. The amount withheld is a credit against the income taxes the employee must pay during the year. 

2. Tax is deducted not only from dividends, but from other income paid to non-residents of a country.
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