Federal Register of Legislation - Australian Government

Primary content

Withholding Tax Instruments as made
This instrument removes the need for an income tax exempt entity to make an application for a variation under subsection 14-235(2). As a result of this instrument, no withholding is required when an income tax exempt entity disposes of ownership of a relevant asset.
Administered by: Treasury
Made 09 Mar 2017
Registered 06 Apr 2017
Tabled HR 09 May 2017
Tabled Senate 09 May 2017

Legislative Instrument

 

PAYG Withholding variation for foreign resident capital gains withholding payments –income tax exempt entities

 

I, Emma Rosenzweig, Deputy Commissioner of Taxation, make this variation under subsection 14-235(5) of Schedule 1 to the Taxation Administration Act 1953.

 

 

 

Deputy Commissioner of Taxation

Dated: 9 March 2017

 

 

1.            Name of instrument

This determination is the PAYG Withholding variation for foreign resident capital gains withholding payments – income tax exempt entities.

2.            Commencement

This instrument commences on the day after its registration on the Federal Register of Legislation.

3.            Application

This instrument applies to payments covered by section 14-200 of Schedule 1 to the Taxation Administration Act 1953, where the entity provides to the purchaser:

(i)    evidence of a private binding ruling issued by the Australian Taxation Office confirming that the entity is income tax exempt that is valid for the year in which the transaction is occurring; or

(ii)   documentation showing that the entity is endorsed for income tax exemption as a registered charity under item 1.1 of section 50-5 of the Income Tax Assessment Act 1997.

4.            Determination

The amount to be paid to the Commissioner in relation to transactions covered by this instrument is varied to nil.

5.            Definitions

·         Income tax exempt entity – exempt entity is defined under subsection 995-1(1) of the Income Tax Assessment Act 1997 (ITAA 1997) which means an entity all of whose *ordinary income and *statutory income is exempt from income tax because of this Act or because of another *Commonwealth law, no matter what kind of ordinary income or statutory income the entity might have; or an *untaxable Commonwealth entity.

 

 

Other terms used in this legislative instrument have the same meaning as defined in the:

· Income Tax Assessment Act 1997, or

· Taxation Administration Act 1953