Show download pdf controls
  • Who withholds

    You must withhold tax from the interest or royalties you pay if you are:

    • an Australian resident payer and pay      
      • a foreign resident payee with an overseas address      
        • whether the loan is for business or private purposes
        • where the royalty payment relates to your business in Australia
         
      • another Australian resident payee where      
        • your payee carries on their business outside of Australia, and
        • the payment relates to your business carried on in Australia
         
       
    • a foreign resident payer in Australia and pay      
      • a foreign resident payee with an overseas address where the payment relates to your business in Australia
      • an Australian resident payee where      
        • the payee carries on their business outside of Australia, and
        • your business is carried on in Australia.
         
       

    If you operate a company that is an Australian resident, you must withhold amounts from unfranked or partly franked dividends that are not conduit foreign income if either of the following applies:

    • the payment is made to an entity which has an address outside Australia
    • your company is authorised to pay the dividend to any entities outside Australia.
      Last modified: 27 Jun 2019QC 17760