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.