ATO campaign on private wealth
February 4, 2021
The ATO has launched a campaign focusing on withholding tax obligations on interest expenses paid overseas for the 2018 and 2019 income years.
Taxpayers who have paid interest to a non-resident must meet certain obligations, including:
- lodging a PAYG withholding from interest, dividend and royalty payments paid to non-residents – annual report (PAYG annual report)
- paying withholding tax to the ATO (typically at the rate of 10 per cent), unless a withholding exemption or double-tax treaty relief applies.
As part of the campaign, the ATO will contact identified taxpayers by an initial letter and a follow-up phone call. This is to ensure compliance with withholding tax obligations.