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H5 Credit for TFN amounts withheld from payments from closely held trusts

Last updated 12 February 2019

Show at H5 the total amount withheld from payments where the fund has not provided its TFN to the trustee of a closely held trust that is subject to the TFN withholding rules.

The trustee of a closely held trust is required to withhold amounts from payments made to the fund if the fund did not provide a TFN. The rate of withholding is 46.5% (top rate plus Medicare levy) of the payments made.

Where amounts have been withheld the trustee of a closely held trust is required to provide a beneficiary with a payment summary in the approved form. The credit amount claimed at H5 appears on the payment summary.

Do not include at H5 amounts from any other withholding rules.

If a credit is reported at H5 for tax withheld, the corresponding gross payment is included as a trust distribution at N to Q, item 10 (as applicable), unless it is non-arm’s length income of the fund in which case it is included at U Net non-arm's length income item 10.

Find out more

About the TFN withholding rules for closely held trusts see TFN withholding for closely held trusts.

End of find out more

QC40267