Foreign resident capital gains tax withholding regime

bigstock_home_purchase_2427613-300x200Buying a property from a foreign resident? Then you may have to withhold the money before you pay to the seller.

The new withholding applies to:

  • real property in Australia (including land, buildings, residential and commercial property)
  • the grant of a lease over real property in Australia, where a premium is paid for the grant of the lease
  • mining, quarrying or prospecting rights
  • interests in Australian entities whose majority assets consist of any of the above property or interests (ie an indirect Australian real property interest), and
  • options to acquire any of the above property or interests.
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