Understanding Your Obligations When Making Payments to Foreign Residents (Sep 24 Tax Update)

Relevant For:

Business owners and investors making payments to foreign residents.

Key Points:

• ATO requires withholding tax on payments like interest, dividends, and royalties to foreign residents.
• Businesses must lodge PAYG annual reports or investment income reports.
• Complex rules apply.
• Exemptions exist, but, are technical.
• ATO monitors compliance; mistakes can lead to penalties.

Full Article:

Is your business or investment structure making payments like interest, dividends, or royalties to foreign residents?

If so, it’s essential to understand your obligations under the Australian Taxation Office (ATO) guidelines, as they may require you to withhold tax from these payments.

The ATO is increasingly focused on