19 July 2016 Australia's foreign resident capital gains tax withholding regime discussed To improve the collection of tax from foreign residents, a new Australian Capital Gains Tax (CGT) withholding regime will require purchasers of taxable Australian real property of $2 million or more to withhold and pay up to 10% of the purchase price to the Commissioner. This will apply to contracts entered into from July 1, 2016. This is a non-final withholding tax that the vendor will apply against any income tax liability. Regardless of the vendor's tax residency status, these new withholding tax rules can apply unless a clearance certificate is obtained from the Australian Taxation Office. A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2016-1246 |
