Withholding Tax
Overview:
Introduction
Withholding tax is the money an employer deducts from an employee’s gross wages and pays directly to the government. The amount withheld is a credit against the income taxes the employee must pay during the year.
Course Objectives
At the end of this course the participants will be able to:
- History of withholding taxes
- What is the purpose of withholding tax?
- How much tax should you have withheld?
- Who qualifies for exemption from withholding tax?
- Importance of learning withholding tax.
Targeted Audience
- Finance managers
- Accountants
- Accounts staff
- Staff members with responsibility for the financial and legislative obligations of their organization.
Course Outline
Unit 1:
- Economic development
- Full employment
- Price stability
- Control of cyclical fluctuations
- Non-revenue objective
Unit 2:
- An advance payment of income tax
- Specified types of interest
- Non-specified types of interest
- Professional or technical services
Unit 3:
- Withholding tax is a final tax when it relates to winnings
- Qualifying interest
- Qualifying dividend and pensions
- Professional services
- Taxation for ensuring economic stability
Unit 4:
- Employers are required by law to withhold employment taxes from their employees
- Various sources of income namely, Salary, work contract, Commission, and Rent.
- Cost-effectiveness, and convenience.
- Taxation as an instrument for improving income distribution
Unit 5:
- Financing the business
- Financing principles
- Recent developments in withholding tax report
- Withholding tax is a compulsory payment to be paid by the citizens who are liable to pay it.
- Taxation as an instrument of economic growth