rosshf Posted May 19, 2012 Share Posted May 19, 2012 (I put this on perthpoms too, but though it might get more exposure here) I have opened accounts with Westpac and intend to transfer money into the account to earn interest (for the next 4 months or so until we get there). I understand that the bank will deduct non-resident withholding tax from any interest in this time. Anyone know the rate? I have seen two rates 10% and a horrifying 46% (ish). Thanks Ross Link to comment Share on other sites More sharing options...
LKC Posted May 20, 2012 Share Posted May 20, 2012 Hi, unfortunately yes, until you can provide Westpac with a TFN (Tax File Number) you will be charged withholding tax on any interest earned of 46.5%. This page is from Commonwealth, but the details will be the same http://support.commbank.com.au/app/answers/detail/a_id/1116/~/what-is-tfn-withholding-tax-(tfnwt). I don't know if you get that back at tax return time, but I suspect not because the tax is for not supplying a TFN (which you can't have until you get to Australia). Hopefully someone else will come along and prove me wrong though! Link to comment Share on other sites More sharing options...
thombatt Posted May 20, 2012 Share Posted May 20, 2012 http://www.ato.gov.au/businesses/content.aspx?doc=/content/50240.htm Link to comment Share on other sites More sharing options...
Alan Collett Posted May 20, 2012 Share Posted May 20, 2012 10% withholding tax applies if you provide a UK postal address. Remember the Aus source interest income is taxable in the UK (=> you may have to register for Self Assessment with HMRC), with the 10% tax withheld available to reduce your net liability in the UK. The 46.5% withholding tax only applies to Australian tax residents who don't provide a Tax File Number to the deposit taker. Best regards. Link to comment Share on other sites More sharing options...
rosshf Posted May 20, 2012 Author Share Posted May 20, 2012 10% withholding tax applies if you provide a UK postal address. Remember the Aus source interest income is taxable in the UK (=> you may have to register for Self Assessment with HMRC), with the 10% tax withheld available to reduce your net liability in the UK. The 46.5% withholding tax only applies to Australian tax residents who don't provide a Tax File Number to the deposit taker. Best regards. Crikey, complicated -- at least its not 46%. Thanks for your help. My accountants here normally deals with my UK tax return, no doubt I'll be having an expensive meeting with them shortly. All the best Ross Link to comment Share on other sites More sharing options...
Alan Collett Posted May 20, 2012 Share Posted May 20, 2012 Hi again Ross. It shouldn't be too costly an exercise - just a Foreign Income supplement to be completed on your UK personal tax return. Best regards. Link to comment Share on other sites More sharing options...
rosshf Posted September 30, 2012 Author Share Posted September 30, 2012 10% withholding tax applies if you provide a UK postal address. Remember the Aus source interest income is taxable in the UK (=> you may have to register for Self Assessment with HMRC), with the 10% tax withheld available to reduce your net liability in the UK. The 46.5% withholding tax only applies to Australian tax residents who don't provide a Tax File Number to the deposit taker. Best regards. Hi Hope perhaps you can answer this Alan. We arrived in Perth a couple of weeks ago and have now been charged 46.5% withholding tax for this month. I applied for TFNs for my wife and I last week. Will the tax be reduced when I supply them with TFNs? Will I see the tax already deducted again, or should I wave goodbye to it? We are on a 163 visa. Appreciate your help Cheers Ross Link to comment Share on other sites More sharing options...
Alan Collett Posted September 30, 2012 Share Posted September 30, 2012 Hello Ross. The tax withheld will be factored into your personal income tax computation when you submit your 2013 Aus tax return. If you would like to discuss maybe telephone my partner Jane Cooper, on Perth number 08 9261 7762. Best regards. Link to comment Share on other sites More sharing options...
rosshf Posted October 1, 2012 Author Share Posted October 1, 2012 Hello Ross. The tax withheld will be factored into your personal income tax computation when you submit your 2013 Aus tax return. If you would like to discuss maybe telephone my partner Jane Cooper, on Perth number 08 9261 7762. Best regards. Thanks Alan, that's what I was hoping. Best wishes Ross Link to comment Share on other sites More sharing options...
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