Private ruling: Dividend withholding tax exemption
Date of advice: 11 February 2026
Published: 9 June 2026
Ruling period: 1 January 20XX to 31 December 20XX

Ruling: Q1: Does the Double Tax Agreement apply to dividend income received by the Fund Management Company from Australian resident companies, such that the dividends shall not be taxed in Australia? | A1: Yes.

Relevant facts and circumstances: The Fund Management Company is a non-resident of Australia. The Fund Management Company receives dividend income from Australian resident companies. The Fund Management Company manages the investment in Australian companies on behalf of non-resident investors. The Fund Management Company and the Investors are resident in a country with a double tax agreement with Australia.


Reasons for decision: Summary: The dividends paid to the Fund Management Company are subject to the dividend withholding rules in section 128B of the Income Tax Assessment Act 1936. However, the dividend article in the relevant double tax agreement provides an exemption, such that the dividends will not be taxed in Australia. The Fund Management Company and the investors satisfy the specific exemption in the dividend article. Therefore, dividend withholding tax will not apply to dividends received by the Fund Management Company from Australian resident companies.