Meaning of “backup withholding” in the English Dictionary


"backup withholding" in Business English

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backup withholdingnoun [ U ]

uk us

TAX in the US, a system in which the tax on the income from some types of investment is sent directly to the tax authority, for example when a bank does not have all the information it needs about the person paying the tax:

(Definition of “backup withholding” from the Cambridge Business English Dictionary © Cambridge University Press)