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  • Private wealth – withholding tax on overseas interest

    Our International risk for Private Groups program has launched a campaign focusing on non-resident withholding tax relating to interest expenses paid overseas for the 2018 and 2019 income years.

    Taxpayers who have paid interest to a non-resident must meet certain obligations, including:

    • lodging a PAYG withholding from interest, dividend and royalty payments paid to non-residents – annual report (PAYG annual report)
    • paying withholding tax to the ATO (typically at the rate of 10%), unless a withholding exemption or double-tax treaty relief applies.

    As part of the campaign, we will contact identified taxpayers by an initial letter and a follow-up phone call. This is to ensure compliance with withholding tax obligations.

    The campaign will also deliver targeted education to assist taxpayers in meeting their obligations to:

    • withhold and remit tax
    • claim deductions for overseas interest expenses
    • lodge the PAYG annual report.

    See also:

    Last modified: 01 Feb 2021QC 64632