Withholding tax collection has an undoubted advantage in that the tax is paid shortly after the income has been made available to the taxpayer (paid by the payer). Withholding tax can be treated as a kind of advance payment of income tax. With this method, the taxpayer is obliged to declare the amount of income earned in the annual tax return and has the right to reduce (reduce) the amount of tax due resulting from this tax return by the amount of withholding tax. We refer to tax collected at source as 'creditable withholding tax'. Alternatively, the withholding tax collected at source may be the final withholding tax. In such a case, the recipient of the income (taxpayer) is released from the obligation to submit a tax return and from the obligation with respect to the amount of tax withheld. Withholding taxes are usually levied at a fixed rate that is applied to revenue (not income), which means that no tax-deductible costs or the taxpayer's personal situation (earning capacity) are taken into account. Therefore, it can be concluded that taxes collected at source are cedular taxes.