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  • Foreign resident capital gains withholding payments

    Foreign resident capital gains withholding applies to vendors disposing of certain taxable Australian property. A 12.5% non-final withholding is applied to these transactions at settlement.

    The assets subject to the withholding tax are:

    • taxable Australian real property with a market value of $750,000 or more
    • an indirect Australian real property interest
    • an option or right to acquire such property or interest.

    Where the seller of these Australian assets is deemed a foreign resident, the buyer must pay 12.5% of the purchase price to the ATO as a foreign resident capital gains withholding payment.

    The foreign resident seller can claim a credit for the foreign resident capital gains withholding payment by lodging a tax return for the relevant year.

    See also:

    Last modified: 29 Nov 2018QC 52305