Making payments to foreign residents

What payment types do you need to withhold tax from?

Generally, you must withhold tax from the following types of payments you make to someone who is not an Australian resident:

• interest
• dividends
• royalties.

You may also have to withhold tax if any of the above payment types have been dealt with (for example, reinvested or capitalised) on behalf of the non-resident.

For more information, refer to PAYG withholding from interest, dividends and royalties to non-residents.

What types of activities do you need to withhold tax from?

Generally, you must withhold tax from payments you make to someone who is not an Australian resident for the following types of activities:

• promoting or operating casino gaming junket arrangements
• entertainment or sports activities
• construction, installation and upgrading of buildings, plant and fixtures and for other works and related activities.

For more information, refer to Foreign resident withholding (FRW) - who it affects.

More information

The government is continually reviewing international tax arrangements. For more information about how potential international legislative changes may affect you, refer to New legislation.

If you need help in applying this information to your own situation, contact us by phone.