Failure to withhold
You may be liable for a failure to withhold penalty if you do not withhold amounts from payments to Australian resident employees engaged in overseas service.
However, the penalty may be waived if you:
- were not aware that you were required to withhold from payments
- your systems could not be updated to do this for you.
Payers in this situation should phone us on 13 28 66.
If you have any employees that are working in a foreign country, you need to be aware of your pay as you go (PAYG) withholding obligations.