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  • Overseas transactions/thin capitalisation

    You must complete this section (and, if required, the International dealings schedule) on an aggregated basis for the trust as a whole, including where you have elected to treat each class of the trust as a separate AMIT ('elective multi-class AMITs').

    The information requested in this section (and, if required, the International dealings schedule) is for information gathering purposes only. The information you provide is not indicative of any interpretive position of the trustee or the Commissioner about the application of the tax laws to elective multi-class AMITs. Trustees or advisers of elective multi-class AMITs may contact the ATO for guidance on the application of these laws to their particular circumstances.

    You must complete an International dealings schedule 2019 if:

    • you had overseas interest or royalty expenses, or
    • you answer Yes to either of the following two questions.

    Was the aggregate amount of your transactions or dealings with international related parties (including the value of any property or service transferred or the balance of any loans) greater than $2 million?

    For elective multi-class AMITs, answer this question on an aggregated basis for the trust as a whole.

    Indicate yes or no in the space provided, as appropriate to your circumstances.

    If you answer Yes, you must complete an International dealings schedule 2019.

    Did the thin capitalisation provisions affect you?

    Indicate yes or no in the space provided, as appropriate to your circumstances. For elective multi-class AMITs, answer this question on an aggregated basis for the trust as a whole.

    If you answer Yes, you must complete an International dealings schedule 2019.

    Interest expenses overseas

    Enter the amount of interest expenses the trust paid to non-residents.

    You must generally withhold an amount of tax (withholding tax) from:

    • interest paid or payable to non-residents
    • interest derived by a resident through an overseas branch.

    You must remit these withheld amounts to us. You cannot claim a deduction for the interest expenses unless you have remitted relevant withholding tax to the Commissioner.

    Do not include amounts of actual or deemed payments to members that are AMIT dividend, interest and royalty (DIR) payments.

    For elective multi-class AMITs, answer this question on an aggregated basis for the trust as a whole.

    See also:

    Royalty expenses overseas

    Enter the amount of royalty expenses paid to non-residents.

    You must generally withhold an amount of tax (withholding tax) from:

    • royalties paid or payable to non-residents
    • royalties derived by a resident through an overseas branch.

    You must remit this amount to us. You cannot claim a deduction for the royalty expenses unless you have remitted any relevant withholding tax to the Commissioner.

    Do not include amounts of actual or deemed payments to members that are AMIT DIR payments.

    For elective multi-class AMITs, answer this question on an aggregated basis for the trust as a whole.

    See also:

    Record keeping

    Keep a record of:

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

    See Record-keeping requirements and Record keeping for overseas transactions.

    Transactions with specified countries

    The list of specified countries is in Appendix 1 of the International dealings schedule instructions 2019.

    Did you directly or indirectly send to, or receive from, one of the specified countries, any funds or property?

    This includes sending or receiving funds or property indirectly, through another entity or country.

    Answer Yes or No as appropriate.

    Do you have the ability or expectation to control, whether directly or indirectly, the disposition of any funds, property, assets or investments located in, or located elsewhere but controlled or managed from one of the specified countries?

    This includes:

    • funds or assets located elsewhere, but controlled or managed from one of the countries listed, and
    • where you have an expectation you are able to control the disposition of the funds or assets, or you have the capacity to control the disposition indirectly, for example, through associates.

    Answer Yes or No as appropriate.

      Last modified: 30 May 2019QC 58632