Taxes applied to the payment of dividends,interest,or royalties by firms are called ________.
A)direct taxes
B)indirect taxes
C)value-added taxes
D)withholding taxes
E)stable taxes

Question

Quizplus · Accepted Answer

Withholding taxes are a type of tax applied to the payment of dividends, interest, or royalties by firms. These taxes are withheld by the firm making the payment and are then remitted to the relevant tax authority. Withholding taxes are a form of indirect taxation, as they are levied on the income or payments made by a firm rather than directly on the individual or entity receiving the income.

Taxes Applied to the Payment of Dividends,interest,or Royalties by Firms