From Longman Dictionary of Contemporary Englishwithholding taxwithˈholding ˌtax noun [countable, uncountable] American EnglishPET money that is taken out of your wages as tax
Examples from the Corpus
withholding tax• And more decisively, they imposed a withholding tax to deter foreign residents from buying domestic deutschmark bonds.• Offshore companies are exempt from exchange controls and withholding tax.• The discount does not attract withholding tax under s349, whereas interest payable to the institutional holder usually would.• Income on any overseas assets backing this policy may be paid subject to a local withholding tax.• As a result, they suffer the full rate of withholding tax on dividends from foreign subsidiaries.• One component of the tax reform had already been abandoned, namely the withholding tax on most forms of savings and investments.From Longman Business Dictionarywithholding taxwithˈholding tax [countable, uncountable]TAX1the amount of interest or DIVIDEND (=regular income from shares) that a financial institution must take from someone’s investments and give to the government as income tax2in the US, the amount of an employee’s income that their employer must keep to give to the government as income tax → tax 