Australian payer who pay interest, dividends, royalties or managed investment trust (MIT) payments to foreign residents, must generally withhold the final tax amount from the payment. For dividend payments, you will only withhold tax from the unfranked component.
If the amount you withhold was:
- greater than the tax owed , the payee can apply for a refund (see Refund of over-withheld withholding: how to apply)
- less than the tax owed, the payee must make a top-up payment to us.
Note: Australian payers can be an Australian resident or foreign resident with a permanent establishment in Australia.
For more information, see: