Private ruling: Foreign super fund - exemption from withholding tax
Date of advice: 24 November 2025
Published: 12 January 2026
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Is the Fund excluded from liability to withholding tax on interest, dividend and non-share dividend income in respect of the Public Investments, under paragraph 128B(3)(jb) of the Income Tax Assessment Act 1936 (ITAA 1936)? | A1: Yes.

Relevant facts and circumstances: 1. The Fund was established for employees of the Entity. 2. The Entity was established and located in a foreign state, Country X and its members consist of individuals who are not Australian residents. 3. The Fund operates a pension scheme for members that calculates a pension upon retirement using a set formula involving several factors. 4. The Rules and Regulations of the Fund state that the Fund has no separate legal personality and is under the supreme authority of the Council of the Fund. 5. The Fund operates as an independent part of the Entity and has its own Board to oversee the Fund, and CEO to manage the Fund. 6. The Rules and Regulations states who are members of the Fund. 7. The Fund is open to new members. 8. The Fund is an indefinitely continuing fund. 9. Contributions to the Fund are made by employees and the Entity. 10. The Rules and Regulations sets out the retirement age. 11. The Fund also provides early retirement benefits, total disability retirement benefits and death benefits. Those benefits are only accessible by members (or their beneficiary if it is a death benefit) of the Fund when they meet the specified criteria set out within the pension rules. 12. The Fund is exempt from income tax in Country X. Investments in Australia 13. The Fund provided a list of its Australian investments and receives interest income from them. 14. All investments in Australia are listed on the ASX with a total participation interest in respect of each investment being below 10%. 15. The Fund holds no rights to appoint a person to a board, committee or similar, either directly or indirectly. 16. The Fund has not entered into, or received, any side letters, arrangements or agreements. 17. The Fund holds no veto rights on security holder votes. 18. The Fund does not have influence of a kind described in subsection 128(3CD) of the ITAA 1936 in respect of these equity investments. The Fund does not have capacity to influence (either directly or indirectly) the day to day management of the operations of its investments.

Relevant legislative provisions: Income Tax Assessment Act 1936 subsection 6(1) | Income Tax Assessment Act 1936 subparagraph 128B(3)(jb)(i)) | Income Tax Assessment Act 1936 subparagraph 128B(3)(jb)(ii) | Income Tax Assessment Act 1936 subparagraph 128B(3)(jb)(iii) | Income Tax Assessment Act 1936 paragraph 128B(3)(jb) | Income Tax Assessment Act 1936 subsection 128B(1) | Income Tax Assessment Act 1936 subsection 128B(2) | Income Tax Assessment Act 1936 subsection 128B(3CA) | Income Tax Assessment Act 1936 subsection 128B(3CB) | Income Tax Assessment Act 1936 subsection 128B(3CC) | Income Tax Assessment Act 1936 subsection 128B(3CD) | Income Tax Assessment Act 1936 section 128B | Income Tax Assessment Act 1997 section 118-520 | Income Tax Assessment Act 1997 subsection 880-105(1)