Exemption from withholding tax
As a superannuation fund for foreign residents (SFFFR), you may be eligible for an exemption from withholding tax on interest, dividend and non-share dividend income derived from certain investments in Australia.
This information will help you to apply for a private ruling about this exemption through a tailored application form.
Who can use this form
Use this form to apply for a private ruling about the withholding tax exemption available to SFFFRs. This form can't be used for any other purpose.
If you have a previous private ruling
If you're an SFFFR that has previously received a private ruling from us and you need a private ruling about your investments in Australia for future years, in your application identify what facts:
- in your original ruling are still accurate
- have changed or are new.
This includes changes to your Australian investments.
If you're an individual
If you're an individual seeking payments relating to your own super, you can't use this form. This form is for the SFFFR itself and isn't for use by individual fund members. Instead, see information that applies to individuals, such as:
Information we need
To provide a private ruling, we need information to determine your eligibility. You can find the exemption for SFFFRs from withholding tax under paragraph 128B(3)(jb) of the Income Tax Assessment Act 1936 (ITAA 1936).
Our tailored application form clearly sets out what we need. If you want to get your information ready before you complete your form, the following explains types of information we need to know:
- Purpose and characteristics
- If you have multiple different benefit plans
- Deriving interest, dividend or non-share dividend income
- Portfolio interest and influence tests.
Purpose and characteristics
We need to know:
- the purpose, functions and activities of the SFFFR
- all of the benefits provided by the SFFFR to its participants
- characteristics of fund participants
- all circumstances in which participants can access the benefits of the fund.
This information can often be found within the fund’s rules, which are often contained in the fund's trust deed, regulations, statute or member handbook.
If you have multiple different benefit plans
If the SFFFR has multiple different benefit plans, we need to understand the differences between the plans and how they are related to the fund. For example:
- are different benefits provided by the different plans to their respective members
- are each of the plans accounted for separately
- do they each have their own investment policies and strategies
- do they each receive the returns from their investments directly?
Deriving interest, dividend or non-share dividend income
We need information to satisfy us that the SFFFR derived the relevant interest, dividend or non-share dividend income paid to it from its Australian investments.
You can use evidence about how the fund invests into Australia. For example, does it invest:
- directly, including through a custodian
- through a pooling vehicle of commingled funds with related or unrelated investors?
If the SFFFR doesn't directly derive the relevant income, the SFFFR may not be eligible for the exemption.
Portfolio interest and influence tests
We need information to satisfy the Commissioner that the SFFFR satisfies the:
- portfolio interest test
- influence test, which means it doesn't have influence of a kind described in subsection 128B(3CD) of the ITAA 1936 – see paragraph 9 of Law Companion Ruling LCR 2020/3.
These tests generally apply to income that is derived by a superannuation fund for foreign residents on or after 1 July 2019. These tests apply separately to each Australian investment sought to be covered by the private ruling application.
Avoid delays
If you don't give all of the relevant information, your application will be delayed and we may reject it. The relevant information includes:
- accurately completing the application form
- attaching the documents we request.
Download the form
Download the Portable Format document (PDF) Private ruling application for a superannuation fund for foreign residents – withholding tax (NAT 72516, PDF 297KB)Opens in a new window.
This form follows the format and numbering of Private ruling application NAT 74957. We have included specific questions that will help you submit the information we need to provide a ruling regarding the exemption from withholding tax for SFFFRs.
If you have trouble completing or lodging the form, email us at PGIAdvice@ato.gov.au or contact us for help.
Apply for a private ruling for an exemption from withholding tax for a superannuation fund for foreign residents