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  • Section C: Variation details

    C22 What is the payment for?

    Select the type of payment by printing X in the applicable box. An explanation of the payment types is given below.

    Entertainment or sports activities

    Payments for entertainment or sports activities subject to FRW are not restricted to individuals but also apply to sporting or entertainment groups. These groups include sporting teams, theatre companies, orchestras or touring bands. They may also apply to individuals who are providing their services through their own corporate entity.

    Payments for these activities may also apply to various support staff associated with either the entertainment or sports industry, and the activities are not restricted to only performance artists and sportspeople.

    For a list of payments subject to withholding, refer to Withholding tax from payments to foreign residents for entertainment or sports activities

    Construction and related activities

    Construction and related activities include activities associated with the construction, installation and upgrading of buildings, plant and fixtures.

    Casino gaming junket activities

    Individuals or other entities who receive payments, incentives and non-cash benefits as a reward for bringing people to a casino to gamble are generally known as casino gaming junket operators.

    C23 What is the reason for the variation?

    Provide the reason for requesting a variation.

    Tax deductible expenses

    Under Australian law, you can claim deductions for expenses incurred in gaining or producing your Australian assessable income, provided they are not of a private, domestic or capital nature. If this is the reason for your application, print X in the ‘Tax deductible expenses’ box.

    If this is the reason for your application, attach an estimated income and expense statement to your application. We may ask for an explanation of expenses estimates.

    If this relates to a sportsperson or entertainer, you must also attach a copy of the performance contract.

    Tax treaty applies

    A tax treaty is an agreement between Australia and another country to determine the allocation of taxing rights and to avoid double taxation. For a tax treaty to apply and exempt your income from Australian tax, you must be a resident of that other country. Australia currently has more than 40 tax treaties with other countries.

    Some parts of Australia’s tax treaties may exempt Australian sourced income from tax in Australia. However, tax treaties may also allow Australia to tax the income you have or will receive.

    If income is assessable in both countries, your country of residence will generally provide some relief for Australian tax paid.

    If the payments you will receive are non-assessable under Australia’s tax laws due to the operation of a tax treaty, print X in the ‘Tax treaty applies’ box. If this is the reason for variation you must also complete questions C26 to C28, in addition to the other questions on the application.

    See also:

    Exempt income – non tax treaty

    If the payments you will receive are income which is exempt from Australian tax or non-assessable income under Australia’s domestic tax laws (and this is not due to the operation of Australia’s tax treaties), print X in the ‘Exempt income – non tax treaty’ box.

    C24 What is the required rate of withholding?

    Provide the required rate of withholding. The rate of withholding should be sufficient to ensure that the amounts withheld during the income year meet your end-of-year tax liability.

    Calculate your required rate and round up to two decimal places.

    If you need help calculating this rate, phone us on 1300 306 105.

    C25 Describe your business activities

    Describe, as accurately as possible, the business activities that relate to your application.

    Some examples are:

    • computer consulting service, rather than consulting service
    • film production company, rather than production company.

    C26 What is the tax treaty – country?

    You must complete this question if your reason for application is ‘Tax treaty applies’.

    C27 What is the tax treaty – article number?

    You must complete this question if your reason for application is 'Tax treaty applies'.

    Tax treaties are made up of a number of articles which deal specifically with the taxing arrangements of specific entities, types of business activities, categories of individuals or particular types of income.

    C28 Provide details to show why the tax treaty article exempts your income from Australian tax

    You must complete this question if your reason for application is 'Tax treaty applies'.

    This requires details on the specific nature of your exemption and not just a restatement of the words in the relevant article. Do not just state ‘NO PERMANENT ESTABLISHMENT IN AUSTRALIA’. Advise why there is no such establishment as defined in the relevant article of the specified tax treaty; for example, ‘ON TOUR SPENDING LESS THAN ONE WEEK AT ANY LOCATION’.

    Describe as accurately as possible the details of your business and the type of income you will receive. This will show if the payment you expect to receive is included under that article and how the article exempts some or all of your income from Australian tax.

    Last modified: 23 Apr 2018QC 21831