Share
VIDEOS 1 TO 50
Withholding Tax 101
Withholding Tax 101
Published: 2013/09/30
Channel: GlobeTax
What is WITHHOLDING TAX? What does WITHHOLDING TAX mean? WITHHOLDING TAX meaning & explanation
What is WITHHOLDING TAX? What does WITHHOLDING TAX mean? WITHHOLDING TAX meaning & explanation
Published: 2016/08/30
Channel: The Audiopedia
Withholding Taxes:  How to Calculate Payroll Withholding Tax Using the Percentage Method
Withholding Taxes: How to Calculate Payroll Withholding Tax Using the Percentage Method
Published: 2014/03/20
Channel: Karin Hutchinson
Withholding Taxes
Withholding Taxes
Published: 2013/01/24
Channel: Kahane Law Office
F6 Withholding Tax 1 - Relevant to P6
F6 Withholding Tax 1 - Relevant to P6
Published: 2013/10/26
Channel: Low Chin Ann
Withholding Tax on Salary Tax-Pakistan Lesson No.1
Withholding Tax on Salary Tax-Pakistan Lesson No.1
Published: 2016/09/26
Channel: Noor Habib
Withholding tax
Withholding tax
Published: 2014/08/09
Channel: Audiopedia
Untold Truth About Withholding Payroll Tax And Paying Your Taxes In America - Does This Law Exist?
Untold Truth About Withholding Payroll Tax And Paying Your Taxes In America - Does This Law Exist?
Published: 2017/05/24
Channel: Dane Calloway
Lesson Withholding Tax for Tax Agent and Studnets - Teach in Khmer language
Lesson Withholding Tax for Tax Agent and Studnets - Teach in Khmer language
Published: 2017/02/13
Channel: Maraing Muong
solving for income tax and federal withholding tax
solving for income tax and federal withholding tax
Published: 2017/03/20
Channel: nsvolley28
Guide to the W4 Tax Form Employee
Guide to the W4 Tax Form Employee's Withholding Allowance Certificate - TurboTax Tax Tip Video
Published: 2012/07/13
Channel: TurboTax
Withholding Tax Requirements for New York State Employers
Withholding Tax Requirements for New York State Employers
Published: 2011/05/17
Channel: NYSTaxDept
What Is Withholding Tax On Dividends?
What Is Withholding Tax On Dividends?
Published: 2017/07/23
Channel: tell sparky
How to File Withholding Tax in iTax
How to File Withholding Tax in iTax
Published: 2017/02/10
Channel: Jason Ndirangu
How do I know how much federal income tax to withhold from my employee
How do I know how much federal income tax to withhold from my employee's paycheck?
Published: 2011/05/02
Channel: MahaloTaxes
Income Tax Withholding Lecture
Income Tax Withholding Lecture
Published: 2012/07/18
Channel: gordonhensley
What does withholding tax mean?
What does withholding tax mean?
Published: 2015/06/09
Channel: What Does That Mean?
SAP FICO LIVE PROJECT TDS - WITHHOLDING TAX
SAP FICO LIVE PROJECT TDS - WITHHOLDING TAX
Published: 2016/08/16
Channel: pranav yadake
IRS Withholding Calculator
IRS Withholding Calculator
Published: 2016/04/07
Channel: IRSvideos
Withholding tax system in Thailand
Withholding tax system in Thailand
Published: 2017/02/23
Channel: NATThaiAC
Foreign Tax Credit-Statutory Withholding Rate vs. Treaty Rate
Foreign Tax Credit-Statutory Withholding Rate vs. Treaty Rate
Published: 2017/03/15
Channel: IRSvideos
Orientation on Taxes by the Bureau of Internal Revenue
Orientation on Taxes by the Bureau of Internal Revenue
Published: 2015/06/25
Channel: UPOU Networks
Rethinking International Tax Law - 2.6 Withholding Tax
Rethinking International Tax Law - 2.6 Withholding Tax
Published: 2015/07/09
Channel: Leiden University MOOCs
What is a PAYG Withholding Tax Variation (2018)?
What is a PAYG Withholding Tax Variation (2018)?
Published: 2017/04/13
Channel: WSC Group
Can I Stop My Employer From Withholding Taxes
Can I Stop My Employer From Withholding Taxes
Published: 2015/02/19
Channel: Freedom Law School
How to compute income tax using BIR
How to compute income tax using BIR's Tax Table
Published: 2015/05/14
Channel: AnsweringHowTo.com
Withholding Tax on Interest
Withholding Tax on Interest
Published: 2012/09/27
Channel: Jessie Lee
Withholding Tax Lesson No.01
Withholding Tax Lesson No.01
Published: 2016/12/10
Channel: Noor Habib
Federal Income Tax Withholding Demonstration Part 1
Federal Income Tax Withholding Demonstration Part 1
Published: 2012/07/22
Channel: gordonhensley
Part 1/4: Singapore Withholding Tax & Treaties Breakfast Seminar - Part 1/4
Part 1/4: Singapore Withholding Tax & Treaties Breakfast Seminar - Part 1/4
Published: 2012/02/14
Channel: CCHasia
How Is Withholding Tax Calculated?
How Is Withholding Tax Calculated?
Published: 2017/08/19
Channel: Dip Dip
vLookUp and Federal Withholding Tax
vLookUp and Federal Withholding Tax
Published: 2014/04/09
Channel: Ming Su
Withholding Tax Configuration Step #01 Check Withholding Tax Countries
Withholding Tax Configuration Step #01 Check Withholding Tax Countries
Published: 2017/08/06
Channel: Bkumar
165 withholding tax statement during filing of monthly return in sales tax
165 withholding tax statement during filing of monthly return in sales tax
Published: 2017/06/10
Channel: taxomous
Accounting for Withholding Tax with OdooSME
Accounting for Withholding Tax with OdooSME
Published: 2016/09/13
Channel: Dare Ojo-Bello
Paying workers - Pay as you go (PAYG) withholding: Tax basics for small business
Paying workers - Pay as you go (PAYG) withholding: Tax basics for small business
Published: 2013/07/22
Channel: Australian Taxation Office
Withholding Tax Configuration Step #02 Define Official Withholding Tax Codes
Withholding Tax Configuration Step #02 Define Official Withholding Tax Codes
Published: 2017/08/06
Channel: Bkumar
Indian Withholding Tax Obligations: How Do You Get it Right? And What Happens if You Don
Indian Withholding Tax Obligations: How Do You Get it Right? And What Happens if You Don't?
Published: 2014/12/09
Channel: Deloitte Dbriefs AP
BIR  Withholding Tax Obligations
BIR Withholding Tax Obligations
Published: 2014/11/19
Channel: PRO MAKER
International Tax - Part 4 - Withholding Tax Regimes
International Tax - Part 4 - Withholding Tax Regimes
Published: 2017/02/04
Channel: Dr Neale G O'Connor FCPA - Startup Tech Asia
Withholding Tax - Money Matters With Wilson Kamau (@Alpha_cap)
Withholding Tax - Money Matters With Wilson Kamau (@Alpha_cap)
Published: 2015/12/08
Channel: Money Matter With Wilson Kamau
Creditable and Expanded Withholding Tax How to Quickbooks
Creditable and Expanded Withholding Tax How to Quickbooks
Published: 2017/08/03
Channel: Cleve William de Dios
How Do My Withholdings Affect My Tax Return?
How Do My Withholdings Affect My Tax Return?
Published: 2016/02/11
Channel: Pure Financial Advisors, Inc.
How to Reduce Withholding Taxes on the Sale of U.S. Property
How to Reduce Withholding Taxes on the Sale of U.S. Property
Published: 2017/06/05
Channel: Allan Madan
Foreign Funds Withholding Tax on Dividends : Personal Finance Advice
Foreign Funds Withholding Tax on Dividends : Personal Finance Advice
Published: 2013/03/20
Channel: ehowfinance
sap extended withholding tax configuration - assign withholding tax for invoice posting
sap extended withholding tax configuration - assign withholding tax for invoice posting
Published: 2013/06/15
Channel: sapcontrolling
How to Calculate Tax on Salary and Withholding Tax 2017 in Cambodia (2)
How to Calculate Tax on Salary and Withholding Tax 2017 in Cambodia (2)
Published: 2017/01/19
Channel: ElBe Na
How to Calculate Withholding Tax and fill the Form in Cambodia 2017
How to Calculate Withholding Tax and fill the Form in Cambodia 2017
Published: 2017/01/21
Channel: ElBe Na
92 at 8 Withholding Tax Pakistan… – 5th September 2015
92 at 8 Withholding Tax Pakistan… – 5th September 2015
Published: 2015/09/05
Channel: Pakistani Talk Shows Videos
Dividend Withholding Tax (DWT)
Dividend Withholding Tax (DWT)
Published: 2012/03/22
Channel: Sanopotens
NEXT
GO TO RESULTS [51 .. 100]

WIKIPEDIA ARTICLE

From Wikipedia, the free encyclopedia
Jump to: navigation, search

A withholding tax, also called a retention tax, is a government requirement for the payer of an item of income to withhold or deduct tax from the payment, and pay that tax to the government. In most jurisdictions, withholding tax applies to employment income. Many jurisdictions also require withholding tax on payments of interest or dividends. In most jurisdictions, there are additional withholding tax obligations if the recipient of the income is resident in a different jurisdiction, and in those circumstances withholding tax sometimes applies to royalties, rent or even the sale of real estate. Governments use withholding tax as a means to combat tax evasion, and sometimes impose additional withholding tax requirements if the recipient has been delinquent in filing tax returns, or in industries where tax evasion is perceived to be common.

Typically the withholding tax is treated as a payment on account of the recipient's final tax liability, when the withholding is made in advance. It may be refunded if it is determined, when a tax return is filed, that the recipient's tax liability to the government which received the withholding tax is less than the tax withheld, or additional tax may be due if it is determined that the recipient's tax liability is more than the withholding tax. In some cases the withholding tax is treated as discharging the recipient's tax liability, and no tax return or additional tax is required. Such withholding is known as final withholding.

The amount of withholding tax on income payments other than employment income is usually a fixed percentage. In the case of employment income the amount of withholding tax is often based on an estimate of the employee's final tax liability, determined either by the employee or by the government.

Basics[edit]

Some governments have written laws which require taxes to be paid before the money can be spent for any other purpose. This ensures the taxes will be paid first, and will be paid on time as the government needs the funding to meet its obligations.

Typically, withholding is required to be done by the employer of someone else, taking the tax payment funds out of the employee or contractor's salary or wages. The withheld taxes are then paid by the employer to the government body that requires payment, and applied to the account of the employee, if applicable. The employee may also be required by the government to file a tax return self-assessing one's tax and reporting withheld payments.

Income taxes[edit]

Wage withholding[edit]

Most developed countries operate a wage withholding tax system. In some countries, subnational governments require wage withholding so that both national and subnational taxes may be withheld. In the U.S.,[1] Canada,[2] and others, the federal and most state or provincial governments, as well as some local governments, require such withholding for income taxes on payments by employers to employees. Income tax for the individual for the year is generally determined upon filing a tax return after the end of the year.

The amount withheld and paid by the employer to the government is applied as a prepayment of income taxes and is refundable if it exceeds the income tax liability determined on filing the tax return. In such systems, the employee generally must make a representation to the employer regarding factors that would influence the amount withheld.[3] Generally, the tax authorities publish guidelines for employers to use in determining the amount of income tax to withhold from wages.

The United Kingdom[4] and certain other jurisdictions operate a withholding tax system known as pay-as-you-earn (PAYE), although the term "withholding tax" is not commonly used in the UK. Unlike many other withholding tax systems, PAYE systems generally aim to collect all of an employee's tax liability through the withholding tax system, making an end of year tax return redundant. However, taxpayers with more complicated tax affairs must file tax returns.

Australia operates a pay-as-you-go (PAYG) system, which is similar to PAYE. The system applies only at the federal level, as the individual states do not collect income taxes.[5]

Other domestic withholding[edit]

Some systems require that income taxes be withheld from certain payments other than wages made to domestic persons. The UK requires withholding of 20% tax on payments of interest by banks and building societies to individuals.[6] A similar requirement is imposed in Ireland for deposit interest.[7] The U.S. requires payers of dividends, interest, and other "reportable payments" to individuals to withhold tax on such payments in certain circumstances.[8] Australia requires payers of interest, dividends and other payments to withhold an amount when the payee does not provide a tax file number or Australian Business Number to the payer.

Social insurance taxes (social security)[edit]

Many countries (and/or subdivisions thereof) have social insurance systems that require payment of taxes for retirement annuities and medical coverage for retirees. Most such systems require that employers pay a tax to cover such benefits.[9] Some systems also require that employees pay such taxes.[10]

Where the employees are required to pay the tax, it is generally withheld from the payment of wages and paid by the employer to the government. Social insurance tax rates may be different for employers than for employees. Most systems provide an upper limit on the amount of wages subject to social insurance taxes.[11]

International withholding[edit]

Most countries require payers of interest, dividends and royalties to non-resident payees (generally, if a non-domestic postal address is in the payers records) withhold from such payment an amount at a specific rate.[12] Payments of rent may also be subject to withholding tax or may be taxed as business income.[13] The amounts may vary by type of income. A few jurisdictions treat fees paid for technical consulting services as royalties subject to withholding of tax.[citation needed][citation needed] Income tax treaties may reduce the amount of tax for particular types of income paid from one country to residents of the other country.

Some countries require withholding by the purchaser of real property. The U.S. also imposes a 10% withholding tax on the gross sales price of a U.S. real property interest unless advance IRS approval is obtained for a lower rate.[14] Canada imposes similar rules for 25% withholding, and withholding on sale of business real property is 50% of the price, but may be reduced on application.

The European Union has issued directives prohibiting taxation on companies by one member state of dividends from subsidiaries in other member state,[15] except in some cases,[16] interest on debt obligations, or royalties[17] received by a resident of another member nation.

Procedures vary for obtaining reduced withholding tax under income tax treaties. Procedures for recovery of excess amounts withheld vary by jurisdiction. In some, recovery is made by filing a tax return for the year in which the income was received. Time limits for recovery vary greatly.

Taxes withheld may be eligible for a foreign tax credit in the payee's home country.

Remittance to tax authorities[edit]

Most withholding tax systems require withheld taxes to be remitted to tax authorities within specified time limits, which time limits may vary with the withheld amount. Remittance by electronic funds transfer may be required[18] or preferred.

Penalties for delay or failure to remit withheld taxes to tax authorities can be severe.[19] The sums withheld by a business is regarded as a debt to the tax authority, so that on bankruptcy of the business the tax authority stands as an unsecured creditor; however, sometimes the tax authority has legislative priority over other creditors.

Reporting[edit]

Nearly all systems imposing withholding tax requirements also require reporting of amounts withheld in a specified manner. Copies of such reporting are usually required to be provided to both the person on whom the tax is imposed and to the levying government.[20] Reporting is generally required annually for amounts withheld with respect to wages. Reporting requirements for other payments vary, with some jurisdictions requiring annual reporting and others requiring reporting within a specified period after the withholding occurs.

See also[edit]

References[edit]

  1. ^ See U.S. Internal Revenue Service (IRS) Publication 15, which includes withholding tables for income tax. State requirements vary by state; for an example, see the New York state portal for withholding tax.
  2. ^ See Canada Revenue Agency Publication T4001. Canada Revenue Agency also provides significant online guidance accessible through a web index, including an online payroll tax calculator.
  3. ^ See, e.g., IRS Form W-4.
  4. ^ See HM Revenue and Customs (HMRC) PAYE for employers: the basics
  5. ^ See the Australian Tax Office's PAYG withholding web page for details and tools.
  6. ^ See HMRC key information on interest. The withholding may be avoided by those whose income is below the tax-free allowance by filing Form R85 with the payee.
  7. ^ See Irish Tax & Customs Deposit Interest Retention Tax.
  8. ^ 26 USC 3406, Backup Withholding. Withholding applies to individuals who have not provided the payee a tax identification number or failed to certify that they are is subject to backup withholding or with respect to whom the IRS has notified the payee that backup withholding applies. The rate of withholding tax is the fourth lowest rate of tax for individuals.
  9. ^ See for example 26 USC 3111; ATO Publication 71038, Super: What employers need to know. Some systems, for example, New South Wales, Australia levy a payroll tax independently of a social insurance system.
  10. ^ See, for example, 26 USC 3102.
  11. ^ These limits may vary by country and year. For 2009, the U.S. income limit on the retirement portion (6.2%) of social security tax was $106,800, versus $102,000 for 2008, and there was no limit on the medicare portion (1.45%) of the tax; see Publication 15, supra. Canadian wages subject to Canada Pension Plan were limited to $46,390 of the excess over $3,500 for 2009, at a tax rate of 4.95%; see Publication T4001, supra. UK National Insurance contributions are due for earnings above the Earnings Threshold (£110 weekly) up to a limit that varies depending on other coverage.
  12. ^ See, e.g., 26 USC 1441-1446, IRS Publication 515, CRA Publication T4061.
  13. ^ For example, U.S. rules provide that rentals that rise to the level of a trade or business are not subject to withholding taxes, but other rental income may be subject to 30% withholding tax. An election may be available under 26 USC 871(d) or an applicable tax treaty.
  14. ^ 26 USC 897 and 26 USC 1445. The lower rate of withholding is requested by filing IRS Form 8288-B by the sale closing date.
  15. ^ The parent/subsidiary directive.
  16. ^ Parent Subsidiary Directive, by Salvador Trinxet Llorca
  17. ^ The interest and royalties directive.
  18. ^ The U.S. requires remittance electronically within no later than the following business day when the balance of unremitted amounts exceeds $100,000, and other thresholds apply; see IRS Publication 15, supra, p. 23. Canada requires remittance within three business days of the end of the quarter-monthly period in which withholding occurs for Threshold 2 remitters; see CRA Publication T-4001, supra., p. 3.
  19. ^ Penalties of up to 100% may be assessed against a withholding agent under 26 USC 6672 for intentional failure to withhold and remit. The penalty may be assessed against any person, including a corporate officer or employee, having custody or control of the funds.
  20. ^ See, for example, IRS Form W-2 and CRA Form T4 with respect to employees, and IRS Form 1042 and CRA Form NR4 with respect to payments to foreign persons.

External links[edit]

Disclaimer

None of the audio/visual content is hosted on this site. All media is embedded from other sites such as GoogleVideo, Wikipedia, YouTube etc. Therefore, this site has no control over the copyright issues of the streaming media.

All issues concerning copyright violations should be aimed at the sites hosting the material. This site does not host any of the streaming media and the owner has not uploaded any of the material to the video hosting servers. Anyone can find the same content on Google Video or YouTube by themselves.

The owner of this site cannot know which documentaries are in public domain, which has been uploaded to e.g. YouTube by the owner and which has been uploaded without permission. The copyright owner must contact the source if he wants his material off the Internet completely.

Powered by YouTube
Wikipedia content is licensed under the GFDL and (CC) license