Meaning of “backup withholding” in the English Dictionary

business-english dictionary

"backup withholding" in Business English

See all translations

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)