The Australian Taxation Office (ATO) released a notice regarding the withholding tax requirements for making interest, dividend, or royalty payments to non-residents on Sunday, 19 May, 2024.
Taxpayers who have paid interest, dividends, or royalties subject to withholding tax, to a non-resident, have an obligation to:
- Lodge a Pay as you go (PAYG) withholding from interest, dividend, and royalty payments to non-residents – annual report by 31 October each year and/or
- lodge an Annual investment income report by 31 October each year, if an investment body is making interest payments to non-resident investors (or lodge a nil return), and
- pay withholding tax to the ATO, unless a withholding exemption or tax treaty relief applies.
