What is withholding tax?

Generally, withholding tax is income tax that we’re required to withhold from a recipient’s income before it can be paid to a recipient. We’re obligated to pay the tax we withhold to the appropriate taxing authority on behalf of the income recipient. This makes sure that the tax is paid promptly to the taxing authority.

 

Statements for income recipients

In most cases, we’re also obligated to provide the income recipient with a periodic statement that summarizes income subject to withholding and the total tax withheld. The income recipient can use that statement to report taxes that were withheld on a tax return filed with the relevant taxing authority.

 

Jurisdiction requirements

Many jurisdictions worldwide require withholding tax when certain criteria are met. For more information about the requirements in jurisdictions where Vrbo is obligated to withhold, please see the following articles:

Italy

Mexico

United States of America