.
If your business or investment structure make payments such as interest, dividends or royalties to any foreign residents, you may be required to withhold tax from these payments.
If these withholding requirements apply to you, you’ll need to lodge a PAYG annual report or an annual investment income report, and withhold and pay the correct amount of tax.
This is important as the withholding tax obligation arises whether you make the payment to the foreign resident, credit their account, or deal with the payment on their behalf or at their direction.
There are a number of exemptions that apply, but this can be technical in operation, so it’s recommended to seek advice specific to your circumstances if you make any payments to non-residents.
The ATO is alert to payers who have not withheld and paid amounts (or have withheld and paid incorrect amounts), incorrectly relied on an exemption or treaty relief, or misclassified deductions for interest or royalty payments to an offshore entity.
AcctWeb
The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
