Venture Capital and Private Equity
Withholding tax is a tax deducted at the source of income, often applied to payments made to foreign entities or individuals. This tax is typically levied on dividends, interest, royalties, and other types of income generated in one country but paid to non-residents, ensuring that the government collects taxes before the income is remitted to the recipient. It serves as a means of compliance with international tax regulations and can impact cross-border investments.
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