// definition
Withholding tax
Tax collected when income is paid
Short definition
Tax deducted when income is paid and remitted to the tax authority by the party responsible for collection. For a cross-border dividend, its application and rate depend on the recipient, domestic law and the relevant tax treaty. A treaty may provide a reduced rate or an exemption subject to its conditions.
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Primary sources
- Conseil d’État, opinion of 27 January 2025Paragraph 1 and introduction: withholding on cross-border dividends; an opinion on a proposal, distinct from the subsequent enacted legislation.