PAYG withholding and employees who work in a foreign country

What are my PAYG withholding obligations?

If you have any employees working in a foreign country and their payments do not meet any of the conditions to be exempt, you should:

• withhold an amount from payments made to them (see Reduction of PAYG withholding amounts to take into account foreign tax)
• provide each payee with a PAYG payment summary - foreign employment.

If an employee is not a resident of Australia, then you do not withhold tax.

The PAYG payment summary - foreign employment (NAT 73297) you provide to your employees must include: the amounts that relate to the period of foreign employment any tax you withheld and paid to a foreign government. For help, refer to How to complete the PAYG payment summary - foreign employment (NAT 73298).