Taxation Administration Regulations 2017

PART 3 - INCOME TAX (CHAPTER 2 IN SCHEDULE 1 TO THE ACT)  

Division 3 - Pay as you go (PAYG) withholding - Working out the amount to withhold  

Subdivision B - Withholding amounts for Subdivision 12-F  

SECTION 40   DIVIDEND PAYMENTS  

40(1)    
The amount to be withheld from a dividend to which section 12-210 in Schedule 1 to the Act applies is:

(a) if an address mentioned in paragraph 12-210(a) , or a place mentioned in paragraph 12-210(b) , in Schedule 1 to the Act is in a tax sharing country and the relevant international tax sharing treaty applies to the dividend - an amount calculated at the rate provided for in the treaty; and

(b) if paragraph (a) does not apply, but that address or place is in a double tax country - an amount calculated at the rate provided for in the relevant double tax agreement; and

(c) if paragraphs (a) and (b) do not apply - an amount equal to 30% of the amount of the dividend.

40(2)    
The amount to be withheld from a dividend to which section 12-215 in Schedule 1 to the Act applies is:

(a) if a foreign resident mentioned in paragraph 12-215(1)(b) in Schedule 1 to the Act is a resident of a tax sharing country and the relevant international tax sharing treaty applies to the dividend - an amount calculated at the rate provided for in the treaty; and

(b) if paragraph (a) does not apply, but that foreign resident is a resident of a double tax country - an amount calculated at the rate provided for in the relevant double tax agreement; and

(c) if paragraphs (a) and (b) do not apply - an amount equal to 30% of the amount of the dividend.

40(3)    
However, paragraphs (1)(b) and (2)(b) do not apply in relation to a dividend that is:

(a) paid to a resident of the United States of America; and

(b) included in a class of dividends that is exempt from tax under the law of that country.