Paying amounts you withhold to us
If you pay interest, dividends or royalties to foreign residents or Australian agents acting on behalf of foreign residents, you must withhold amounts from payments you make and send those amounts to us.
We will tell you when you must report and pay amounts you withhold based on whether you are a small, medium or large withholder.
Small withholders
If you withhold A$25,000 or less each year, you are a small withholder and you must report and pay the amounts you withhold quarterly using an activity statement. We will send an activity statement to you each quarter showing when your payment is due. On your activity statement, you report amounts you withheld from foreign residents' interest, dividends, and royalties at label W3.
Medium withholders
If you withhold between A$25,001 and A$1 million each year, you are a medium withholder. You must report and pay the amounts you withhold monthly using an activity statement. We send an activity statement to you each month showing when your payment is due. On your activity statement, you report amounts from foreign residents' interest, dividend, and royalties at label W3.
Large withholders
If you withhold more than A$1 million each year, you are a large withholder and you must pay the amounts you withhold electronically. Do not report the withholding amount on your activity statement.
If you are already registered as a large withholder, continue to follow the same procedures as for all your other PAYG withholding obligations.
Sections within Paying and reporting amounts you withhold
Last Modified: Monday, 19 November 2012