Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p16
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 16/63)
Character Range: 378872–381553

(b) the day when the notice was given to the entity liable to pay the interest.
Failure to comply with this section may contravene section 8C of this Act.

Royalties

12‑280  Royalty payment to overseas person
  An entity must withhold an amount from a *royalty it pays to an entity, or to entities jointly, if:
 (a) the recipient or any of the recipients has an address outside Australia according to any record that is in the payer's possession, or is kept or maintained on the payer's behalf, about the transaction to which the royalty relates; or
 (b) the payer is authorised to pay the royalty at a place outside Australia (whether to the recipient or any of the recipients or to anyone else).
For limits on the amount to be withheld, see section 12‑300.

12‑285  Royalty payment received for foreign resident
 (1) An entity that receives a payment of a *royalty must withhold an amount from the payment if:
 (a) the entity is a person in Australia or an *Australian government agency; and
 (b) a foreign resident is or becomes entitled:
 (i) to receive the royalty or part of it from the entity, or to receive the amount of the royalty or of part of it from the entity; or
 (ii) to have the entity credit to the foreign resident, or otherwise deal with on the foreign resident's behalf or as the foreign resident directs, the royalty or part of it, or the amount of the royalty or of part of it.
For limits on the amount to be withheld, see section 12‑300.
 (2) The entity must withhold the amount:
 (a) if the foreign resident is so entitled when the entity receives the payment—immediately after the entity receives the payment; or
 (b) if the foreign resident becomes so entitled after the entity receives the payment—immediately after the foreign resident becomes so entitled.

General

12‑300  Limits on amount withheld under this Subdivision
  This Subdivision does not require an entity:
 (a) to withhold an amount from a *dividend, from interest (within the meaning of Division 11A of Part III of the Income Tax Assessment Act 1936) or from a *royalty if no *withholding tax is payable in respect of the dividend, interest or royalty; or
 (b) to withhold from a dividend, from interest (within the meaning of that Division) or from a royalty more than the withholding tax payable in respect of the dividend, interest or royalty (reduced by each amount already withheld from it under this Subdivision).
Note: Section 128B of the Income Tax Assessment Act 1936 deals with withholding tax liability.

Subdivision 12‑FA—Departing Australia superannuation payments

Table of sections
12‑305 Departing Australia superannuation payment
12‑310 Limits on amount withheld under