What is the name of the tax imposed by a country on income, often dividends, paid to a company’s home country when operating abroad?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Explanation

Withholding tax is the tax deducted at the source on income such as dividends paid to the parent company in its home country. It differs from wealth tax, income tax, or capital gains tax.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What is the name of the tax imposed by a country on income, often dividends, paid to a company’s home country when operating abroad?

Explanation

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