Payments
Withholding Tax
Tax deducted at source from a payment and remitted to the authorities on the recipient's behalf.
What it means in practice
The payer subtracts the required tax from the gross amount and sends it to the relevant authority. The rate depends on factors such as payment type, recipient status, jurisdiction, treaty eligibility, and submitted documentation.
Why it matters
Withholding changes the creator's received amount and may affect later tax credits or filing obligations.
How it is used
A payment platform deducts applicable withholding before transferring the remaining campaign fee to an international creator.
Also called
tax withholding
Related terms
- W-8BENThe United States form certifying foreign status for non resident individuals receiving payments, enabling reduced treaty withholding rates.
- EscrowHolding campaign funds with a neutral third party until agreed deliverables are approved and released.
- Foreign Exchange FeeA charge applied when converting payment from the brand's currency into the creator's local currency.