Foreign resident PAYG withholding - individual entities

Can I vary the rate of withholding?

You can apply to us to vary the rate of withholding from your payments. To do so you will need to complete a PAYG foreign resident withholding variation (FRWV) application (NAT 11097).

You would usually apply when the amounts to be withheld using the rates in Tables 1 or 2 will not match your expected end of year tax liability, for example:

• the payments include an amount that is not taxed in Australia (through the operation of a tax treaty or other exempt income), or
• you expect to have tax deductible expenses which will reduce your taxable income and you believe the amounts to be withheld will exceed the actual tax liability at the end of the income year.

You may apply to vary the rate to zero, if the applicable amount is not taxed in Australia, and/or tax deductible expenses are equal to or greater than the payment/s received.