A withholding tax

    What is that?
Withholding tax is an amount  which  the party withholds making payment to another (payee) and paid to the taxation authorities. The amount the payer deducts may not always be the same Everything depends  on the nature of the product or service being paid for. The purpose of withholding tax is to  avoid tax by international or domesticated  taxpayers .



    What should you remember about ?:


•    The amount of income tax  your wage bracket withholds  depends on your marital status and the number of allowances you claim.
•    Withholdings may be reduced by claiming allowances based on tax deductions and credits.
•    Check if  tax withholdings  meet the estimated tax rules that require withholdings plus estimated tax payments to equal 90% of your current year liability or the required percentage of your  liability
•    In some cases  you can  ask your employer to calculate withholdings using the "part year" method