Tax withheld on withdrawal
The arrangement whereby a broker acting as tax agent withholds tax not only at year end but also when money is taken off the account, based on the result recorded as of that date.
How to read the number
That is why less arrives than was requested, and why the year is recalculated afterwards: an excess withholding comes back, a shortfall is taken at the end of the period.
When the metric lies
Also known as: withholding on cash withdrawal