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Payments to foreign residents

What to do if you're an Australian resident business making payments to someone who isn't an Australian resident.

Last updated 15 February 2016

As an Australian resident you generally withhold tax from the following types of payments you make to someone who is not an Australian resident:

  • interest
  • unfranked dividends
  • royalties.

You may also have to withhold tax if any of the above payment types have been dealt with (for example, reinvested or capitalised) on behalf of the non-resident.

However, if the payment is made to a resident of a country with which Australia has a tax treaty, you may be required to withhold less tax or no tax at all in some circumstances.

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You must also withhold tax from payments you make to someone who is not an Australian resident for the following types of activities:

  • promoting or operating casino gaming junket arrangements in Australia
  • entertainment or sports activities in Australia
  • construction, installation and upgrading of buildings, plant and fixtures and for other works and related activities in Australia.

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