Income tax in respect of recurring payments at source is sometimes collected by requiring the payer to make a deduction on account of income tax before making the payment. This deduction is generally known as withholding tax. It frequently applies to dividends (www.practicallaw.com/A34897) (although not those paid by UK companies), interest and royalties. This liability is often reduced or eliminated under a double taxation treaty (www.practicallaw.com/A34913). For further details, see Practice note, Withholding tax (www.practicallaw.com/5-201-9175).