Focus on the pronunciation of withholding tax
English definition of “withholding tax”
noun [C or U] FINANCE, TAX
› a percentage of the money earned from an investment that is kept by a financial organization to pay directly to the government in tax: EU/Spanish/US withholding tax Britain remains opposed to an EU-wide withholding tax on cross-border savings.withholding tax on dividends/interest payments/savings Many Swiss bank account holders use Jersey to avoid the withholding tax levied on Swiss corporate dividends.
› in the US, a percentage of an employee's income that an employer keeps to pay directly to the government in tax: Individuals paying too much withholding tax will receive a tax refund in May.