• If the payee is a Timor-Leste 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 from each payment depends on whether the payment is wholly JPDA income or if it also includes other income that is subject to withholding (non-JPDA income).

    • If the payment is JPDA income only, the amount to be withheld from each payment is 2.9% (that is, 10% of the minimum foreign resident tax rate of 29%) of the gross amount of the payment.
    • If the payment includes JPDA and non-JPDA income, the amount to be withheld from each payment is worked out using the following formula:

    Tax at foreign resident tax rates
    total income

    X

    [10% of JDPA income
    + non-JDPA income]

    Last modified: 16 Sep 2010QC 21570