Taxation Administration Act 1953

SCHEDULE 1 - COLLECTION AND RECOVERY OF INCOME TAX AND OTHER LIABILITIES  

Note: See section 3AA .

Chapter 2 - Collection, recovery and administration of income tax  

PART 2-5 - PAY AS YOU GO (PAYG) WITHHOLDING  

Division 12 - Payments from which amounts must be withheld  

Subdivision 12-F - Dividend, interest and royalty payments  

Royalties

SECTION 12-285   ROYALTY PAYMENT RECEIVED FOR FOREIGN RESIDENT  

12-285(1)    
An entity that receives a payment of a *royalty must withhold an amount from the payment if:

(a) the entity is a person in Australia or an *Australian government agency; and

(b) a foreign resident is or becomes entitled:

(i) to receive the royalty or part of it from the entity, or to receive the amount of the royalty or of part of it from the entity; or

(ii) to have the entity credit to the foreign resident, or otherwise deal with on the foreign resident ' s behalf or as the foreign resident directs, the royalty or part of it, or the amount of the royalty or of part of it.

For limits on the amount to be withheld, see section 12-300 .

12-285(2)    

The entity must withhold the amount:

(a) if the foreign resident is so entitled when the entity receives the payment - immediately after the entity receives the payment; or

(b) if the foreign resident becomes so entitled after the entity receives the payment - immediately after the foreign resident becomes so entitled.