ato logo
Search Suggestion:

55 Royalty expenses overseas

Last updated 11 February 2019

Show at R the royalty expenses paid to non-residents during the income year.

Include this amount at J item 5, plus or minus any reconciliation adjustment for royalty expenses that you included at BExpense reconciliation adjustments item 5.

An amount of tax (withholding tax) is generally withheld from royalties paid or payable to non-residents and from royalties derived by a resident through an overseas branch. You must remit this amount to the ATO. You cannot claim a deduction unless you have remitted any withholding tax to the Commissioner. 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 2011. For more information phone 13 28 66.

Record keeping

Keep a record of the following:

  • names and addresses of recipients
  • amounts paid
  • nature of the benefit derived, for example, a copy of the royalty agreement
  • details of tax withheld where applicable and the date on which it was remitted to the ATO.
 

QC94511