• If the payee is an Australian resident for tax purposes

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    The Australian tax amount to be withheld is the amount:

    less

    • the amount of tax paid or payable to Timor-Leste for services performed in the JPDA (JPDA income) for the relevant period.

    The amount subject to tax in Timor-Leste may include superannuation and other benefits. For example, an Australian resident receives a monthly payment of $10,000 for work in the JPDA and an additional amount of $1,000 is paid into a superannuation fund for the payee. The amounts withheld for Australian tax would be based on $10,000, while the tax paid to Timor-Leste would be based on $11,000.

    Attention

    The rate of tax levied by Timor-Leste is currently 20%. Since 90% of the JPDA income is subject to tax in Timor-Leste, the effective rate is 18% (that is, 90%   20% = 18%).

    End of attention
    Last modified: 16 Sep 2010QC 21570