Definition

Withholding tax (taxation and fiscal policy) (Fr. impôt sur le revenu, Ro. impozit pe venit, Gr. παρακράτηση φόρου) (See also: retention tax, wage tax, income tax, corporate tax) = represents the national and/or federal government’s tax on the revenue of an employee. This tax is usually paid by the employee, but the employer retains it and pays it to the National Treasury account. It also is a tax levied on income (interest and dividends) from securities owned by a non-resident as well as other income paid to non-residents of a country. Residents who gain income from securities shall also pay this tax.

In some jurisdictions, like the US, the amount withheld is a credit against the income taxes the employee must pay during the year.

Useful links

Legislation

https://static.anaf.ro/static/10/Anaf/legislatie/Cod_fiscal_norme_2016.htm#T4C1 –Tax Code [Romanian]

https://www.legifrance.gouv.fr/affichCode.do?cidTexte=LEGITEXT000006069577 – General French Tax Code [French]

http://www.legislation.gov.uk/ukpga/2007/3/contents - Income Tax Act 2007 from United Kingdom [English]

http://ec.europa.eu/taxation_customs/individuals/personal-taxation_en - European Union provisions concerning personal income tax [English]

http://www.oecd.org/ctp/treaties/2014-model-tax-convention-articles.pdf - The OECD Model Tax Convention with respect on taxes on income and capital [English]

http://www.oecd.org/ctp/treaties/2014-model-tax-convention-articles.pdf - The OECD legislation regarding international income taxation [English]

https://www.irs.gov/tax-professionals/tax-code-regulations-and-official-guidance - The USA Income Tax Act [English]

Organisations and associations

https://www.anaf.ro - Romanian Tax Authority

https://ec.europa.eu/taxation_customs/home_en – DG Tax and Customs European Commission

https://www.irs.gov/ - Internal Revenue Service of USA

https://data.gov.uk/publisher/her-majestys-revenue-and-customs - Tax Authority from UK

https://www.oecd.org/tax/ - Organisation for Economic Cooperation and Development Tax Department

Case law

(1) European Union

https://ec.europa.eu/taxation_customs/infringements/eu-court-justice-case-law_en - European Court of Justice competence in taxation case law in infringement procedures

https://www.legifrance.gouv.fr/affichJuriAdmin.do?oldAction=rechJuriAdmin&idTexte=CETATEXT000032670411&fastReqId=1158695532&fastPos=10 –Decision from 2nd og June 2016 of the Appellate Court of Paris Administrative Division

http://legeaz.net/spete-contencios/decizie-privind-impozitul-pe-venit-7-15-2009 - Decision from 15th of January 2009 of Appellate Court of Suceava District, Administrative Division

http://www.jurisprudenta.com/jurisprudenta/speta-ccbf6cq/ - Decision from 11th of December 2014 of Tribunal from Tulcea, Administrative Division

(2) United States

UNITED STATES TAX COURT

http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irlccb1/1/doc - CLYDE A. ARASHIRO v. COMMISSIONER OF INTERNAL REVENUE

http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irlccb1/2/doc - CLIFTON E. STANLEY AND DARLENE H. STANLEY v. COMMISSIONER OF INTERNAL REVENUE

http://www.legalbitstream.com/scripts/isyswebext.dll?op=get&uri=/isysquery/irlccb1/3/doc - STEPHEN T. RANGEN AND JOYCE G. RANGEN v. COMMISSIONER OF INTERNAL REVENUE

Online publications

https://www.irs.gov/pub/irs-pdf/p17.pdf - Withholding Tax and Estimated Tax Retention [English]

https://www.irs.gov/publications/ - Income Revenue Service from USA publications regarding income tax in the USA [English]

https://www2.deloitte.com/us/en/pages/tax/articles/a-roadmap-for-accounting-for-income-taxes.html - Deloitte Report 'A roadmap for accounting for income taxes' [English]

http://www.pwc.com/us/en/cfodirect/publications/accounting-guides/guide-to-accounting-for-income-taxes-2013-edition.html - Guide to Accounting for Income Taxes PwC [English]

http://www.ey.com/gl/en/services/tax/worldwide-personal-tax-guide---country-list - EY Worldwide Personal Tax Guide [English]

http://www.journalofaccountancy.com/news/2016/oct/olympic-tax-break-201615326.html - Schreiber S., 2016, Olympic tax break enacted, American Journal of Accountancy [English]

Publications

Ault, Hugh; Arnold, Brian; 2010, Comparative Income Taxation. A structural Analysis, 3rd ed., Kluwer Law International BV, The Netherlands, [English]

Bankman, Joseph; Griffith, Thomas D., Pratt, Katherine; 2008;  Federal Income Tax. Examples and Explanations, 5th ed., NY, US, Wolters Kluwer Law and Business, Aspen Publishers [English]

Edwin, Robert; Seligman, Anderson, 2005, The Income Tax: A Study of the History,Theory and Practice of Income Taxation at home and abroad, New Jersey, USA, The Law Exchange Ltd.Publisher [English]

Ganghof, Steffen; 2006, The Politics of Income Taxation. A comparative Analysis, Essex, UK, ECPR Press [English]

Whittenburg, Gerald; Gill, Steven; Altus-Buller, Martha, 2015, 2016 Income Tax Fundamentals, Boston. US, Cengage Learning [English]

 

By Daniela Ghicajanu