Document ID: chunk:federal_register_of_legislation:C2025C00014:section:128b:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 128B (pt 1/10)
Character Range: 1240214–1242710

128B  Liability to withholding tax
 (1A) In this section, a reference to a person to whom this section applies is a reference to the Commonwealth, a State, an authority of the Commonwealth or of a State or a person who is, or persons at least 1 of whom is, a resident.
Note: References in this section to amounts paid to a person may include amounts from an AMIT that, under section 12A‑205 in Schedule 1 to the Taxation Administration Act 1953, are treated as payments to the person (from the trustee of the AMIT or a custodian).
 (1) Subject to subsections (3), (3A), (3D) and (3E), this section applies to income that:
 (a) is derived, on or after 1 January 1968, by a non‑resident; and
 (b) consists of a dividend paid by a company that is a resident.
Note: An amount declared to be conduit foreign income is an amount to which this section does not apply: see sections 802‑15 and 802‑17 of the Income Tax Assessment Act 1997.
 (2) Subject to subsection (3), this section also applies to income that:
 (a) is derived, on or after 1 January 1968, by a non‑resident; and
 (b) consists of interest that:
 (i) is paid to the non‑resident by a person to whom this section applies and is not an outgoing wholly incurred by that person in carrying on business in a country outside Australia at or through a permanent establishment of that person in that country; or
 (ii) is paid to the non‑resident by a person who, or by persons each of whom, is not a resident and is, or is in part, an outgoing incurred by that person or those persons in carrying on business in Australia at or through a permanent establishment of that person or those persons in Australia.
Note: An amount of interest paid to a person by a temporary resident is an amount to which this section does not apply: see section 768‑980 of the Income Tax Assessment Act 1997.
 (2A) Subject to subsection (3), where income:
 (a) is, or has, after 2 July 1973, been, derived, or derived in part, by a person to whom this section applies in carrying on business in a country outside Australia at or through a permanent establishment of the person in that country; and
 (b) consists of interest that:
 (i) is or has been paid to the person by another person to whom this section applies and is not an outgoing wholly incurred by that other person in carrying on business in a country outside Australia at or through a permanent establishment of that other person in that country; or
 (ii) is or has been paid to the first‑mentioned person