Payments to foreign residents

As an Australian resident you generally withhold tax from the following types of payments you make to someone who is not an Australian resident:

• interest
• unfranked dividends
• royalties.

You may also have to withhold tax if any of the above payment types have been dealt with (for example, reinvested or capitalised) on behalf of the non-resident.

However, if the payment is made to a resident of a country with which Australia has a tax treaty, you may be required to withhold less tax or no tax at all in some circumstances.

See also:

• Withholding from interest paid to foreign residents

You must also withhold tax from payments you make to someone who is not an Australian resident for the following types of activities:

• promoting or operating casino gaming junket arrangements in Australia
• entertainment or sports activities in Australia
• construction, installation and upgrading of buildings, plant and fixtures and for other works and related activities in Australia.

See also:

• Foreign resident withholding (FRW) - who it affects.

What to do if you're an Australian resident business making payments to someone who isn't an Australian resident.