24 February 2016 Australian Parliament passes Bill for non-final 10% withholding tax on foreign resident capital gains The Tax Bill to implement the non-final 10% withholding tax obligation on the purchase of certain Australian real property from foreign residents was passed by the Senate on February 22, without amendment. Broadly, and subject to various exclusions, the 10% non-final withholding measure applies to the acquisition of a capital gains tax (CGT) asset from a foreign resident, where the asset is "taxable Australian property," being either: (i) taxable Australian real property (TARP); (ii) an indirect Australian real property interest; (iii) an option or right to acquire such property or such an interest. This is subject to the market value of the asset being AU$2 million or more. A Tax Alert prepared by Ernst & Young's Australian Tax Desk in New York, and attached below, provides additional details. Document ID: 2016-0371 |
