WITHHOLDING TAX Withholding tax refers to the amount of tax that is deducted from an individual's income or payment before it is paid out to them. It is a common practice used by governments to collect taxes efficiently. The purpose of withholding tax is to ensure that individuals who earn income from various sources, such as employment, investments, or freelance work, are paying their tax obligations throughout the year rather than having to bear the burden of a large tax bill at the end of the