You must withhold tax from the interest or royalties you pay if you are:
- an Australian resident payer and pay
- a foreign resident payee with an overseas address
- whether the loan is for business or private purposes
- where the royalty payment relates to your business in Australia
- another Australian resident payee where
- your payee carries on their business outside of Australia, and
- the payment relates to your business carried on in Australia
- a foreign resident payee with an overseas address
- a foreign resident payer in Australia and pay
- a foreign resident payee with an overseas address where the payment relates to your business in Australia
- an Australian resident payee where
- the payee carries on their business outside of Australia, and
- your business is carried on in Australia.
If you operate a company that is an Australian resident, you must withhold amounts from unfranked or partly franked dividends that are not conduit foreign income if either of the following applies:
- the payment is made to an entity which has an address outside Australia
- your company is authorised to pay the dividend to any entities outside Australia.