Draft Taxation Determination

TD 93/D81

Income tax: when do the final royalty withholding tax provisions first apply?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 93/98.

FOI status:

Preamble

1. The final royalty withholding tax provisions apply to royalties paid or credited to a non-resident from the commencement of the recipient's 1993-94 year of income.

2. For most royalty recipients the year of income will commence on 1 July 1993 in accordance with the definition of "year of income" in section 6 of the Income Tax Assessment Act 1936. However, where the Commissioner has approved a Substituted Accounting Period (SAP), for the recipient in accordance with section 18, the royalty withholding tax provisions shall first apply from the beginning of that SAP in lieu of the normal financial year which ends on 30 June.

Example 1

A non-resident taxpayer who receives royalties has a SAP from 1 January to 31 December, approved in accordance with section 18. The royalty withholding tax provisions shall apply to royalties paid or credited to the non-resident from 1 January 1993 onwards.

Example 2

A non-resident taxpayer who receives royalties has a SAP from 1 October to 30 September, approved in accordance with section 18. The royalty withholding tax provisions shall apply to royalties paid or credited to the non-resident from 1 October 1993 onwards.

Commissioner of Taxation
1 April 1993

References

BO 91/9830-0

Subject References:
royalty withholding tax