Taxation Determination

TD 93/98

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

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FOI status:

may be releasedFOI number: I 1215054

This Determination, to the extent that it is capable of being a 'public ruling' in terms of Part IVAAA of the Taxation Administration Act 1953 , is a public ruling for the purposes of that Part. Taxation Ruling TR 92/1 explains when a Determination is a public ruling and how it is binding on the Commissioner. Unless otherwise stated, this Determination applies to years commencing both before and after its date of issue. However, this Determination does not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of the Determination (see paragraphs 21 and 22 of Taxation Ruling TR 92/20).

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. However, where the Commissioner has approved a Substituted Accounting Period (SAP) for the recipient in accordance with section 18 of the Income Tax Assessment Act 1936 , 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 1994.

Example 1:

A non-resident taxpayer who receives royalties has a SAP ending 31 December in lieu of the following 30 June. 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 ending 30 September in lieu of the preceding 30 June. The royalty withholding tax provisions shall apply to royalties paid or credited to the non-resident from 1 October 1993 onwards.

Commissioner of Taxation
3/6/93

Previously issued as Draft TD 93/D81

References

ATO references:
NO 91/9830-0

ISSN 1038 - 8982

Subject References:
Royalty withholding tax

Legislative References:
ITAA Pt III Div 11A

TD 93/98 history
  Date: Version: Change:
You are here 3 June 1993 Original ruling  
  25 January 2017 Withdrawn  

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