Monday, 10 November 2008

Withholding Tax for Non-Residents

PAYG withholding from interest, dividends and royalties to non-residents

Non-residents for taxation purposes in Australia pay withholding tax on income earned from Australian sources. The link above contains the rates at which different passive income is taxed. Interest is taxed at 10% and unfranked dividends are taxed at 30%. Franked dividends are not taxed.
The tax is automatically withheld by the issuing institution and there is no need to submit a tax return or to pay the tax separately.

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