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ATO Notice on Obligations for Interest, Dividend, or Royalty Payments to Foreign Residents — Orbitax Tax News & Alerts

The Australian Taxation Office (ATO) issued a notice on 8 September 2022 to remind taxpayers of their obligations when making interest, dividend, or royalty payments to foreign residents.


Have you made payments to foreign residents?

Taxpayers who have paid interest, dividends or royalties to a foreign 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.

The PAYG annual report must be lodged with us by 31 October each year. You can lodge online or use a paper form.

The PAYG withholding reporting year is 1 July to 30 June regardless of any substituted accounting period that you use.

You do not have to lodge this annual report if you have correctly reported interest or dividend payments to foreign residents in an annual investment income report (AIIR).