Cima F1 Exam Question No 23

Question No 23:

A withholding tax is:

A. Tax deducted at source before payment to a recipient in a foreign country.
B. Tax on profits that is then paid out net as a dividend to equity shareholders.
C. Tax paid to local tax authorities with an amount withheld from payment.
D. Tax withheld from employees’ salaries with salaries paid to them net of tax.

Answer: A