While withholding is a type of tax; In its simplest definition, it means tax deducted at the source. So what is the purpose of withholding?
Withholding tax is a type of tax collected by deducting the tax amount for corporate and income tax-related earnings before the income is passed to the owner and depositing it to the tax office on behalf of the owner of the business. While the withholding cannot be expressed in a fixed amount, it also varies according to the payment type. Also, withholding is calculated as a percentage of earnings.
The purpose of withholding is to ensure that tax collection can be done more securely and to reduce tax costs. Because withholding tax is withheld before it passes to the income holder, it helps to pay tax income faster and reduce the risk of leakage.
Many of the income from securities, particularly stock and bond gains, are taxed through withholding. Since the deduction is made by the brokerage house or bank where the transactions are made, investors do not need to submit a separate declaration.
Source: bigpara- GÜNDEM by bigpara.hurriyet.com.tr.
*The article has been translated based on the content of bigpara- GÜNDEM by bigpara.hurriyet.com.tr. If there is any problem regarding the content, copyright, please leave a report below the article. We will try to process as quickly as possible to protect the rights of the author. Thank you very much!
*We just want readers to access information more quickly and easily with other multilingual content, instead of information only available in a certain language.
*We always respect the copyright of the content of the author and always include the original link of the source article.If the author disagrees, just leave the report below the article, the article will be edited or deleted at the request of the author. Thanks very much! Best regards!