Auditing - Accounting - Administration

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final withholding tax

Typically, withheld tax is treated as a down payment on account of the taxpayer's final tax liability when the withholding is made in advance. It may be refunded if it is determined from the taxpayer's tax return form that his/her tax liability is less than the tax withheld. In other cases, the withheld tax is deducted from the final tax due. In some cases, the withheld tax is treated as a means of discharging the taxpayer's tax liability and no tax return or additional tax is required. (Relative income is subject to separate taxation).

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