Trust distribution to overseas

[perfect]

I would like to find out is there a limit of how much I can distribute to overseas beneficiaries (and if there are any catch to it other than the 10% witholding tax). Is there a department or www that I can enquire?

[perfect]

Ai caramba!
I just called the ATO, and know what they said?

Trust distribution to non-residence

29% from $0 - $21,600
30% onwards to $52,000 !

The '10% withholding tax' that I was told by many does not apply to trust distribution!
It only applies to dividends issued from companies to non-residence.

Say I gotta trust set up with most beneficiaries as non-residence, what can I do?

How is this:
Can the trustee company give 20% of the profit of a project to the trust.
And say, 80% of it is kept in the company (but does it still gets taxed at 30%?) and then gives dividends to the non-residence intended at 10% witholding tax??

SHUCKS!!!!!!!!!
This is the end!!!!!!!!!!!!!!!!!!!!!!

[woohoo]

Hi Perfect,

Maybe the guy at the ATO got confused?

In Trust Magic, page 107, in was asked in one of the Questions inthe book. And it says "Witholding tax 10%" to non-residents.

Maybe Dale can confirm whether this is updated or changed?

If you are right, maybe there are other strategies to lessen the tax?

Have a nice day.

[woohoo]

Any comments on this one Dale or NigelW or anyone?
I would like to know too, as I have a relative who lives overseas

[Nominees]

I would like to know the answer to this one too. :rolleyes:

I was told: If the person you are making the distribution to resides in a country that has a double tax agreement with Australia, they will only pay tax in the country they reside in, and no tax is payable in Australia.

A bit of light on this subject would be good...

Nom

[Patosan]

Certainly there is witholding tax to pay regardless of the tax arrangements of the recipient's contry. Whether it's 10 or 29 or 30% I'm not sure, though I wouldn't be surprised if it was as initially suggested. being 29 then 30% over a certain limit.

One could try to gain resident status for one or more of the os recipients, though this could be difficult with the need to supply 100 points for a bank account. However then they would have to income tax on the distribution which would create the same end result.

Are the recipients going to eventually live in Oz ?
If not, I feel an os trust or Co structure would have more benefits than one based in Oz.