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 B 'Expense 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 2012. 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.

QC25837