Withholding from payments to foreign residents for entertainment or sports activities

Withholding arrangements for some foreign residents

The Australian Government has extended the pay as you go (PAYG) withholding system to include certain payments made to foreign residents. This guide covers those payments made to foreign residents for entertainment or sports activities.

If you engage a foreign resident as an employee, you should continue to withhold from those payments under the existing PAYG withholding provisions.

If you are making dividend, interest or royalty payments to foreign residents, different withholding rules apply. Refer to the More information section of this guide for links to this information.

Payer and payee The payer is the person or entity making a payment and the payee is the person or entity receiving a payment.

Sections within Withholding arrangements for some foreign residents

• Which payments are subject to withholding?