Tax Insights

Article

Foreign resident CGT withholding regime

Tax insights

On Thursday, 3 December 2015, the last parliamentary sitting day for 2015, the Government introduced the Tax and Superannuation Laws Amendment (2015 Measures No. 6) Bill 2015 (the Bill) into parliament. The Bill contains a foreign resident withholding regime designed to boost compliance with Australia’s capital gains tax (CGT) laws by foreign residents who dispose of direct interests in taxable Australian real property or indirect Australian real property interests. The proposed measure imposes an obligation on the purchaser to remit 10 per cent of the total purchase price to the Commissioner of Taxation. 
The tax withheld/remitted is not a final tax – the foreign resident vendor will still be required to lodge an Australian income tax return and will receive a credit for the amount remitted by the purchaser.

The proposed measure is to apply to CGT events that happen on or after 1 July 2016, regardless of whether the asset is held on revenue or capital account.

Foreign resident CGT withholding regime
  • Contact us
  • Submit RFP
  • Our Solutions

    Progress your business growth and development

    Take a look at the products and services we offer.

    Tax services

    Business tax, International tax, Transfer pricing, Tax management consulting, Mergers and acquisitions – tax, Research and development and government incentives, Deloitte Private, Indirect tax, Global employer services and Business Process Solutions

    Indirect tax

    Indirect tax is becoming many governments' preferred method of revenue raising. It’s more critical than ever to manage indirect tcompliance and cash flows. Deloitte’s indirect tax experts understand the nuances of regulations, the importance of industry knowledge and the growing role of technology.

    Tax management consulting

    With consulting, technology and outsourcing experience, Deloitte TMC helps businesses meet the challenges of multi-jurisdictional tax operations, including compliance, reporting and risk management for direct and indirect taxes. 

Did you find this useful?