Withholding is basically a method of paying taxes. Withholding tax is the process by which the amount of tax on earnings subject to income or corporate tax liability by employers is deducted in accordance with the rates determined by law without passing on to the owner of the income in the middle and collected by the employer to the tax office. When an employer is going to pay his employee in exchange for professional services, he must apply a certain amount of withholding deduction on the amount and deposit the amount deducted to the tax office. Thanks to this situation, employees do not need to declare and pay taxes for the amount they earn in exchange for the professional services they perform. The pay methods subject to withholding tax are listed according to the Corporate Tax Law and the Income Tax Law. These laws also specify the withholding rates for persons who are liable to pay withholding tax. Thanks to the withholding system, tax costs are reduced and collection is carried out more safely. Paying paid withholding tax before withholding tax allows the payments of tax revenues to be made faster and the risk of loss is reduced.
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