Withholding rules

MITs (including AMITs) are required to withhold an amount of income tax when making certain payments to a non-resident member.

The tax withheld is a final tax on the non-resident's Australian earnings and will usually match the amount of the taxpayer's subsequent tax liability on the income.

The rate of tax to be withheld from payments to non-resident members will vary according to whether the member is a resident of a country that has a tax treaty or exchange of information agreement with Australia, and whether the amount is either:

• a payment of dividends, interest and royalties (DIR)
• a 'fund payment'.

A member is generally subject to withholding where their residential address or the place of payment is outside of Australia.

Find out about:

• Withholding for MITs
• Withholding for AMITs
• Withholding on fund payments for MITs
• Withholding on DIR payments for MITs
• Applying the new withholding rules from 1 July 2015
• Implications of MIT withholding for foreign residents

See also:

• Stapled structures
• What are tax treaties?
• MIT withholding tax refund or top-up payment