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 International TaxA withholding tax is an income tax that is withheld or deducted by a payer from income paid to a payee with the effect that the payee receives a net payment of the full income amount due minus the withholding tax applied. Withholding taxes are typically applied against wages, royalties and dividends. Payers who are obligated by tax authorities to withhold taxes due on payments made are generally held liable for taxes due in the event that they fail to withhold.
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