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Withholding Tax Calculator

Calculate tax withheld at source on cross-border payments (dividends, interest, royalties, services) and see potential savings from Double Tax Treaties.

What is withholding tax? Tax deducted at source by the payer before remitting payment to a non-resident recipient. Double Tax Treaties (DTTs) often reduce the standard rate.

Payment type

Source country

Gross payment amount ($)

Treaty reduced rate (%) optional

Enter the reduced rate from a Double Tax Treaty if applicable.

Custom rate (%) override

Effective rate: 30%NaN

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Frequently Asked Questions

What is withholding tax?

Withholding tax is tax deducted directly from a payment before it is remitted to a non-resident recipient. The payer (company or financial institution) withholds and remits to the tax authority.

How do Double Tax Treaties reduce withholding tax?

Double Tax Treaties (DTTs) between countries negotiate reduced withholding tax rates (often 5–15% instead of 25–30%). You must claim the treaty benefit by submitting appropriate forms to the tax authority.

Who pays withholding tax?

Economically, the recipient bears the tax burden since the payment is reduced. The payer is legally responsible for deducting and remitting the correct amount.