Tax & Compliance
Tax deducted at source by the payer before paying the recipient.
Withholding tax is the tax the payer (employer, client) deducts before paying the recipient and remits directly to the tax authority. Documented mileage reimbursement is typically not income and is not withheld. But fixed allowances under a non-accountable plan are wages and subject to FICA, IRRF, ISR, and equivalent withholding.