AUSTRALIAN CAPITAL GAINS TAX FOR FOREIGN RESIDENTS.
Are you selling or purchasing a property with a value of $750,000 or higher? If so, we suggest you contact your Stratogen Accountant to discuss the implications.
Foreign residents and capital gains tax
Currently the foreign resident capital gains withholding rules apply to real property disposals where the contract price is $750,000 or above. The withholding rate is 12.5% of the purchase price and applies if the seller is a non-tax resident of Australia. The burden to withhold falls on the purchaser (and their legal representative) and it is therefore prudent for the purchaser to require a clearance certificate from the seller (confirming that the seller is an Australian tax resident) in order to avoid the requirement to withhold tax at settlement.
If you are the seller, even if you are a resident of Australia, you may need to request a clearance certificate from the ATO to ensure you comply with the foreign resident capital gains withholding rules.
These rules apply to contracts entered into after 1 July 2017.
More information : If you’re a foreign resident and need more information about capital gains tax implications, contact your Stratogen accountant for advice.
Noosa Chartered Accountants and Financial Advisors.
Stratogen consists of a team of expert personal accountants and professional financial advisors who assist foreign residents living on Queensland’s Sunshine Coast.
Our accounting firm’s head office is located at Noosa on the QLD Sunshine Coast. Our expertise is unparalleled and thus we work with clients living interstate around Australia and internationally.
We offer the full range of services expected of a leading edge accounting firm. Our personal services for individuals include accounting, tax returns, superannuation funds and financial planning, estate planning, insolvency services and asset protection. Our approach to both our clients is practical, open and honest.
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