What happens if I do not 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:
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.
- were not aware that you were required to withhold from payments
- your systems could not be updated to do this for you.