Retention Tax definition explanation

Posted on March 2, 2009 by admin

What is Retention Tax?
A mandatory tax placed on income that is earned on investments in a country that is not the resident’s home country. This only applies to countries that are members of the European Union (EU). Read more for examples and further explanation including related video clips and also comments

Example explains Retention Tax
The retention tax was set up by the EU in 2005 to prevent individual investors from avoiding taxes on their income by investing their money in other countries. The rates are scaling, and will rise to a level of 35% by 2011.

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