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withholding tax
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Withholding Tax
Personal income tax paid on wages, salaries, dividends, or other income received by a non-resident of a country. Withholding tax is deducted at source to ensure that the income does not leave the country without being taxed. For example, dividends paid on US stocks held by a UK resident would be subject to withholding tax. Where countries have reciprocal double-taxation arrangements the tax may be reclaimable; this can be achieved by filling a tax return.
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