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Payroll tax Most developed countries operate a wage withholding tax system. In some countries, subnational governments require wage withholding so that both national and subnational taxes may be withheld. Income tax for the individual for the year is generally determined upon filing a tax return after the end of the year.
The amount withheld and paid by the employer to the government is applied as a prepayment of income taxes and is refundable if it exceeds the income tax liability determined on filing the tax return. In such systems, the employee generally must make a representation to the employer regarding factors that would influence the amount withheld.
The United Kingdom  and certain other jurisdictions operate a withholding tax system known as pay-as-you-earn PAYEalthough the term "withholding tax" is not commonly used in the UK. Unlike many other withholding tax systems, PAYE systems generally aim to collect all of an employee's tax liability through the withholding tax system, making an end of year tax return redundant.
However, taxpayers with more complicated tax affairs must file tax returns. The system applies only at the federal level, as the individual states do not collect income taxes. Ireland requires withholding of tax on payments of interest on deposits by banks and building societies to individuals.
India enforces withholding tax also on payments between companies and not just from companies to individuals, under the TDS system.
|Updated Rules on the Filing and Payment of Withholding Tax||In order to attract foreign capital flow into China, a preferential tax deferral policy has recently been implemented by the Chinese government.|
|[Updated] Monthly Filing of Expanded/Creditable and Final Withholding Tax Returns||Corporate income tax payable will be withheld at the source, with the payer acting as the withholding agent, who will withhold tax from the amount of each payment when it is due.|
|China Withholding Tax Deferral Policy for Foreign Direct Reinvestment||The tax payable on income derived by non-resident enterprises should be withheld at source, with the payer i. The withholding income tax rate for non-tax resident enterprises in China is 20 percent currently reduced to 10 percent.|
Since Aprilthe United Kingdom has discontinued withholding tax on interest and dividends, though in some cases this income will become liable for taxation through other means. Most such systems require that employers pay a tax to cover such benefits.
Social insurance tax rates may be different for employers than for employees.
Most systems provide an upper limit on the amount of wages subject to social insurance taxes. A few jurisdictions treat fees paid for technical consulting services as royalties subject to withholding of tax.
Some countries require withholding by the purchaser of real property.
The European Union has issued directives prohibiting taxation on companies by one member state of dividends from subsidiaries in other member state,  except in some cases,  interest on debt obligations, or royalties  received by a resident of another member nation.
Procedures vary for obtaining reduced withholding tax under income tax treaties. Procedures for recovery of excess amounts withheld vary by jurisdiction.
In some, recovery is made by filing a tax return for the year in which the income was received. Time limits for recovery vary greatly. Taxes withheld may be eligible for a foreign tax credit in the payee's home country.
Remittance to tax authorities[ edit ] Most withholding tax systems require withheld taxes to be remitted to tax authorities within specified time limits, which time limits may vary with the withheld amount.
Remittance by electronic funds transfer may be required  or preferred.Understanding China's tax treaties and withholding taxes Dealing with withholding taxes in transactions with Chinese companies can be a major challenge. When foreign companies are trying to plan for or deal with withholding taxes in their transactions with Chinese entities without any conditions or exceptions, the withholding tax will be.
Foreign enterprises without establishments or places of business in China shall be subject to a unilateral concessionary rate of withholding tax (WHT) at 10% on gross income from dividends, interest, lease of property, royalties, and other China-source passive income unless reduced under a tax treaty.
New Measure for Remittance from China The State Administration of Taxation (SAT) and the State Administration of Foreign Exchange (SAFE) jointly issued the following new circular, Huifa  No, otherwise referred to as Circular 64, on 25th November Historically, a Chinese payor needs to obtain various tax clearance documents before a remittance application can be accepted by a bank in China.
A tax certificate is required for each foreign currency payment exceeding $30, In China, withholding tax (WHT) is levied on the income of foreign enterprises that do not have a physical establishment in China but provide services to China-based businesses. China Bank is supervised by the Bangko Sentral ng Pilipinas (BSP).
For inquiries and other concerns, please call China Bank's Customer Contact Center at (02)