Interest withholding tax | Tax Chats

In this five part series, Belinda Crowley (Corporate Tax, Brisbane) will be taking us through important tax topics and their potential impacts on your business.

In the first instalment of this series, Belinda Crowley discusses the basic principles of Interest Withholding Tax, and the instances in which you might be obliged to withhold and remit it to the Australian Taxation Office.

0:00 Interest withholding tax
0:29 Under Australian Law, Interest Withholding Tax is payable
1:00 Obligation to withhold and remit to the ATO on interest paid
1:41 Non-contingent obligation to pay the amount borrowed back
2:06 Potential withholding tax liability
2:16 Interest is considered to be paid when
2:55 High purchase arrangement with a non-resident entity
3:41 Exemptions from interest withholding tax
5:05 Non-resident annual withholding report
5:30 For more information about Interest withholding tax