Australia: Reduction in the withholding tax rates on Australian sourced income from a non-managed investment trust (non-MIT) for non-resident beneficiaries
Clearstream Banking1 would like to inform customers that effective
immediately
the withholding tax rate for a non-resident beneficiary entitled to Australian sourced income from a non-managed investment trust (non-MIT) will be reduced from 47% to 45% for non-MIT Short Term Capital Gain on Tap (CGT), Unknown Income Type and non-MIT Sundry Other Income (SOI) components.
Background
The temporary budget repair levy of 2% that was imposed for the 2015-2017 financial years will end on the 30 June 2017.
Impact on customers
For all income payments processed from 1 July 2017, non-resident investors will be taxed at the reduced rate of 45% on income paid by Australian unit trusts not qualifying as MITs for withholding tax purposes pursuant to Subdivision 12-H of the Taxation Administration Act 1953 for non-MIT Short Term Capital Gain on Tap (CGT), Unknown Income Type and non-MIT Sundry Other Income (SOI) components.
Further information
The Market Taxation Guide – Australia will be updated in due course.
For further information, please contact the Clearstream Banking Tax Help Desk, Clearstream Banking Client Services or your Relationship Officer.
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1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking Frankfurt (CBF) customers using CreationOnline), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.