MITs (including AMITs) are required to withhold an amount of income tax when making certain payments to a non-resident member.
The tax withheld is a final tax on the non-resident's Australian earnings and will usually match the amount of the taxpayer's subsequent tax liability on the income.
The rate of tax to be withheld from payments to non-resident members will vary according to whether the member is a resident of a country that has a tax treaty or exchange of information agreement with Australia, and whether the amount is either:
- a payment of dividends, interest and royalties (DIR)
- a 'fund payment'.
A member is generally subject to withholding where their residential address or the place of payment is outside of Australia.
Find out about:
- Withholding for MITs
- Withholding for AMITs
- Withholding on fund payments for MITs
- Withholding on DIR payments for MITs
- Applying the new withholding rules from 1 July 2015
- Implications of MIT withholding for foreign residents