Show download pdf controls
  • Legislative Instrument registered for FRCGW and mortgagee arrangements

    The Legislative InstrumentExternal Link for foreign resident capital gains withholding (FRCGW) where there is no residue after a mortgagee exercises a power of sale, has been registered and commenced on 10 October 2020.

    This Legislative Instrument has removed the need to apply to the Commissioner for a variation in certain circumstances where the mortgagee is an authorised deposit-taking institution (ADI) under section 5 of the Banking Act 1959.

    No withholding is required for an acquisition of land where:

    • the mortgagee exercises a power of sale
    • the residue is zero or less than zero
    • the mortgagee provides a written declaration to the transferee that the amount to withhold is varied to nil under the instrument.

    There is no prescribed form for the written declaration.

    A mortgagee that is not an ADI and will need to apply for a variation under the usual process to have the withholding reduced.

    If you are going to enter into a transaction as described, we recommend that you:

    See also:

    Last modified: 12 Oct 2020QC 63925