### Question
What does withholding tax mean?


### Answer
**Withholding tax** has the following meaning in *26 U.S.C. § 943*:

> any tax which is imposed on a basis other than residence and for which credit is allowable under section 901 or 903

#### Citation:
  - *26 U.S.C. § 943*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter N-Tax Based on Income From Sources Within or Without the United States > PART III-INCOME FROM SOURCES WITHOUT THE UNITED STATES > Subpart E-Qualifying Foreign Trade Income**

