TAG Tax

This article discusses final and non-final withholding taxes, and the recent changes to withholding tax on disposal of property assets in Australia that may apply to both Australian resident and non-resident tax payers.

Final withholding tax Non-residents are not required to disclose their interest, dividend and royalty income in an Australian income tax return, as final withholding tax is deducted.  The rates of withholding tax vary across the tax treaties signed with other countries and are broadly:

Dividend franking credits in-excess of the withholding tax are non-refundable and cannot be carried forward for future use. Non-residents need to ensure that their Australian financial institutions (e.g. banks and share registries) have correctly recorded their non-residency and that withholding tax is being deducted from income where appropriate.

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