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Withholding Tax? |
Can someone hands me with the concept of withholding tax?
I have this in mind....
If you have amount A invest now with rate of (i) it accumulates to A*(1+i)^2 at the end of year 2. Now, if the rate of with holding tax is (t) you should pay A*[(1+i)^2 - 1]*t ?
| Answer: I can't reinforce your formula. If I put $100 in the bank at 5%, it will grow to $105 by the end of the year. If I retract nothing it will be 110.25 by the end of year 2. If I withdraw the full $5, it can only grow to $105. If I'm subject to backup withholding |
| ad2 |
