Financial & invoicing terms explained
Withholding tax
Withholding tax is deducted from a payment to a vendor and remitted per statute - common in cross-border and contractor scenarios.
Gross vs net
Invoices should show gross, withheld, and net paid when withholding applies.
Treaties
Tax treaties may reduce rates - documentation is essential.
Roles
Sometimes the payer must withhold; other times the vendor remits - follow local law.
Withholding tax - FAQ
Common examples?+
Withholding on contractors or cross-border royalties - jurisdiction-specific.
Invoice presentation?+
Show gross, withheld, and net paid when applicable.
Who remits?+
Depends on law - buyer may withhold and remit on behalf of seller.