PAYG withholding from interest, dividends and royalties paid to non-residents

Who should withhold?

You must withhold tax from royalties you pay under any of the following circumstances:

• as an Australian resident payer to a foreign resident payee with an overseas address where the payment relates to your business in Australia
• as a foreign resident payer in Australia to a foreign resident payee with an overseas address where the payment relates to your business in Australia
• as an Australian resident payer to another Australian resident payee where both of the following apply
• your payee carries on their business outside of Australia
• the payment relates to your business carried on in Australia
• as a foreign resident payer in Australia to an Australian resident payee where both of the following apply
• you carry on your business in Australia
• your payee carries on their business outside of Australia.

Sections within Royalties

• Who should withhold?
• When to withhold
• Withholding rate
• Exemptions