Tax rates for foreign residents
You advise the Australian financial institution – your payer – that you are a foreign resident and they withhold tax in Australia at the time of payment. You won't need to declare this income in an Australian tax return. Your payer should withhold tax at the following rates:
Tax rate for |
Treaty countries |
Non-treaty countries |
|---|---|---|
Interest |
Some agreements provide an exemption from withholding tax in certain circumstances. |
10% |
Unfranked dividends |
Most agreements reduce the rate to 15%. |
30% |
Royalties |
Most agreements reduce the rate to 15%. |
30% |
The full list of our tax treaties is maintained by Treasury and can be found at Income tax treatiesExternal Link.
Tell your Australian payer your current overseas address so they can withhold the right rate of tax. If you don't, they may withhold tax at the higher rate of 47% (from 1 July 2017).
Certificates of payment
If you need proof of payment of withholding tax to comply with the tax requirements of your own country, you can ask your payer to ask us for a certificate of payment.
For more information on investment income and withholdings paid to foreign residents, see:
- Investment income and royalties paid to foreign residents
- Withholding from dividends paid to foreign residents
- Withholding from royalties paid to foreign residents.
Notice of assessment (NOA)
If you require a notice of assessment, see Get a copy of your notice of assessment.
If you are a foreign resident, check the tax implications for interest, unfranked dividends and royalties you earn.