Can I vary the rate of withholding?
You can apply to vary the rate of withholding from your payments.
You will need to complete an online PAYG foreign resident withholding variation (FRWV) application.
You would usually apply for a variation when:
- the payments include an amount that is not taxed in Australia (through the operation of a tax treaty or other exempt income)
- you expect to have tax deductible expenses which will reduce your taxable income.
You may apply to vary the rate to zero, if the applicable amount is not taxed in Australia, and/or tax deductible expenses are equal to or greater than the payment/s which will be received.
Send the complete form to:
Australian Taxation Office
GPO Box 9977
SYDNEY NSW 2001
Or via email to:
What happens if my variation to the withholding rate is approved?
We will send a notice to your payer confirming the new rate. Your payer cannot vary the withholding rate until they receive this notice.
We will also send you a letter confirming the approval of your variation. The letter we send to you is not the official notice. Your payer cannot implement a variation using your letter.