ATO: Private Wealth – withholding tax on overseas royalties

February 24, 2022

The ATO’s International Risk for Private Groups Program has launched a campaign focusing on non-resident withholding tax relating to royalty expenses paid overseas for the 2019 and 2020 income years.

The ATO will contact identified taxpayers by mail and then with a follow-up phone call.

Taxpayers who have paid royalties 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, unless a withholding exemption or tax treaty relief applies.