B Interest expenses overseas

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This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

Show at B the deductible interest incurred on money borrowed from overseas sources to:

• acquire income-producing assets
• finance operations, or
• meet current expenses.

The fund should generally withhold an amount of tax (withholding tax) from interest paid or payable to non-residents, and from interest paid to a resident which was derived by the resident through an overseas branch. The fund must remit these amounts to the Tax Office.

Record keeping

If the fund paid interest to non-residents, keep a record of the:

• name and address of recipients
• amount of interest paid or credited, and
• amount of withholding tax withheld, and the date it was remitted to the Tax Office.
• If you have withheld amounts from payments to non-residents, you may need to lodge a PAYG withholding from interest, dividend and royalty payments paid to non-residents - annual report by 31 October 2009. For more information, phone the Business Infoline on 13 28 66.