Edited version of private advice

Authorisation Number: 1052416550933

Date of advice: 03 July 2025

Ruling

Subject: Withholding tax

Question 1

Does withholding tax apply under section 128B of the Income Tax Assessment Act 1936 to the unfranked dividend distributions you received from an Australian corporate tax entity that had been declared in its distribution statement to be conduit foreign income?

Answer 1

No.

This ruling applies for the following periods:

For the income year ended 30 June 20XX

For the income year ended 30 June 20XX

For the income year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

Your nationality and domicile of origin is Country B.

You moved to Australia in YYYY but departed to move to Country C from MM YYYY.

During YYYY you resided mostly in Country D.

You are a foreign resident (non-resident) for Australian tax purposes and for the income year ended 30 June 20XX you paid tax in Country D.

X Pty Ltd ABN XX XXX XXX XXX, which is an Australian resident company, distributed an unfranked dividend amount of $X to you relating to the 20XX income year.

X Pty Ltd had declared in its distribution statements for the ruling periods, conduit foreign income received from the services it provided to a company named X in Country E.

Conduit foreign income received by X Pty Ltd in the 2024 income year was $X.

None of the reductions set out in sections 802-35, 802-45 and 802-50 of the Income Tax Assessment Act 1997 apply.

Relevant legislative provisions

Income Tax Assessment Act 1936 section 128B

Income Tax Assessment Act 1997 Subdivision 802-A