TAXATION ADMINISTRATION REGULATIONS 1976 (REPEALED)

PART 5 - PAY AS YOU GO WITHHOLDING  

Division 4 - Dividend, interest, royalty, mining and certain superannuation payments  

REGULATION 40   DIVIDEND PAYMENTS  

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

(a) if an address mentioned in paragraph 12-210(a), or a place mentioned paragraph 12-210(b), of 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 of Schedule 1 to the Act applies is:

(a) if a foreign resident mentioned in paragraph 12-215(1)(b) of 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.