Private ruling: foreign pension funds and exemption from withholding tax
Published: January 2015
Ruling period: Year ended 30 June 2014 | Year ended 30 June 2015 | Year ended 30 June 2016 | Year ended 30 June 2017 | Year ended 30 June 2018
Date scheme commenced: 1 July 2013

Ruling: Questions and answers | 1. Is the trustee of the Master Trust Fund and its participating funds excluded from liability to withholding tax on its interest and/or dividend income derived from Australia under paragraph 128B(3)(jb) of the ITAA 1936? | Yes. | 2. Is interest and/or dividend income derived by the trustee of the Master Trust Fund and its participating funds non-assessable income of the fund under section 128D of the ITAA 1936? | Yes.

Relevant facts and circumstances: The applicant has applied for a private ruling for the superannuation fund for foreign residents. The application includes the following documentation: Relating to the Master Trust • Statement from the trustee of the Master Trust confirming that the fund is an indefinitely continuing fund and a provident, benefit, superannuation or retirement fund, was established in a foreign country, was established and is maintained only to provide benefits for individuals who are not Australian residents, the central management and control of the fund is carried on outside Australia by entities none of whom is an Australian resident, an amount paid to the fund or set aside for the fund has not been or cannot be deducted under the Income Tax Assessment Act 1997 (ITAA 1997) and a tax offset has not been allowed or is not allowable for such an amount. • Letter from the overseas authorities, certifying that the Master Trust is a registered pension fund and is exempt from tax in respect of interest and dividend income in that country. • A link to the most recent financial reports for the Master Trust. • A declaration from the trustee that the Master Trust is a superannuation fund for non-residents. • A copy of the trust deed which provides details of rules and benefits available to the members. Relating to the participating funds • Copies of statements from trustees of the participating funds confirming that the participating funds are indefinitely continuing funds and are provident, benefit, superannuation or retirement funds, were established in a foreign country, were established and maintained only to provide benefits for individuals who are not Australian residents, the central management and control of the funds are carried on outside Australia by entities none of whom is an Australian resident, an amount paid to the funds or set aside for the funds has not been or cannot be deducted under the Income Tax Assessment Act 1997 (ITAA 1997) and a tax offset has not been allowed or is not allowable for such an amount. • Letters from the overseas authorities, certifying that each of the participating funds is exempt from tax in respect of interest and dividend income from that country. • A declaration provided by the trustee of each of the participating pension fund confirming that each fund is a superannuation fund for non-residents. • A link to the most recent financial reports for each participating fund. • Recent publications issued to members in respect of each participating pension fund explaining the pension plan and the benefits available to members.

Relevant legislative provisions: Income Tax Assessment Act 1936 Paragraph 128B(3)(jb). | Income Tax Assessment Act 1936 Section 128D. | Income Tax Assessment Act 1997 Section 118-520.