6 Jun 2016
Taxation: New withholding tax on property sales
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Buyers and sellers of residential and commercial property will have new withholding tax rules from the 1 July 2016.
Australian resident sellers of property with a sale price of $2m or more will be required to obtain a clearance certificate form the Australian Tax Office to confirm that the seller is a resident of Australia for tax purposes
If this new clearance certificate is not obtained then the buyer will be required to withhold 10% of the purchase price and remit it to the Australian taxation Office.
The new rules have been introduced to ensure foreign residents meet their capital gains tax liabilities.
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