Trust distribution to overseas
- Thread starter perfect
- Start date
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!!!!!!!!!!!!!!!!!!!!!!
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!!!!!!!!!!!!!!!!!!!!!!
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.
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.
I would like to know the answer to this one too. 
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
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
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.
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.
