• Interest, unfranked dividends and royalties

    If you are a foreign resident, tax is generally withheld in Australia from interest, unfranked dividends and royalties you earn in Australia.

    You advise the Australian financial institution – your payer – that you are a foreign resident and they withhold tax in Australia at the time of payment. You won't need to declare this income in an Australian tax return. Your payer should withhold tax at the following rates:

    Tax rates for foreign residents

    Tax rate for

    Treaty countries

    Non-treaty countries

    Interest

    Some agreements provide an exemption from withholding tax in certain circumstances.

    10%

    Unfranked dividends

    Most agreements reduce the rate to 15%.

    30%

    Royalties

    Most agreements reduce the rate to 15%.

    30%

    Note: The full list of our tax treaties is maintained by Treasury and can be found at Australian tax treatiesExternal Link.

    Tell your Australian payer your current overseas address so they can withhold the right rate of tax. If you don't, they may withhold tax at the higher rate of 47% (from 1 July 2017).

    Certificates of payment

    If you need proof of payment of withholding tax to comply with the tax requirements of your own country, you can ask your payer to ask us for a certificate of payment.

    See also:

    Last modified: 30 Jun 2017QC 33221