There are multiple definitions - click on the translation that matches your context.

Steuerabzug

Substantiv

full

withholding tax

noun

Comparative law notes

Germany

The more accurate translation would be the inversion, "tax withholding", since the German term emphasizes more the act of withholding then the type of tax.

Definitions of withholding tax

English

money that is taken out of your pay as tax

The recriminations over the withholding tax could affect plans to reform the EU's financial services industry.