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COMMONWEALTHRegulation
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s 42

Royalty payments

In force
Part 3Income tax (Chapter 2 in Schedule 1 to the Act)
Division 3Pay as you go (PAYG) withholding—Working out the amount to withhold
Subdivision BWithholding amounts for Subdivision 12‑F

42 Royalty payments

The amount to be withheld under section 12‑280 or 12‑285 in Schedule 1 to the Act from a royalty is:

(a)

if the person to whom the royalty is paid, or a foreign resident mentioned in paragraph 12‑285(1)(b) in that Schedule, is a resident of the other party to an international tax sharing treaty that applies to the royalty—the amount calculated at the rate provided for in the treaty; and

(b)

if paragraph (a) does not apply, but the person to whom the royalty is paid, or a foreign resident mentioned in paragraph 12‑285(1)(b) in Schedule 1 to the Act, is a resident of the other party to a double tax agreement—the amount calculated at the rate provided for in the agreement; and

(c)

if paragraphs (a) and (b) do not apply, but the person to whom the royalty is paid, or a foreign resident mentioned in paragraph 12‑285(1)(b) in that Schedule, is a resident of a country other than Australia—30% of the amount of the royalty; and

(d)

if the person to whom the royalty is paid is a resident of Australia—30% of the amount of the royalty.

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