I have been asked to process talent payments for a TV ad. Most are Australian residents and one is a foreign resident. They are one off payments ranging from $2k to $22k. Do they need to supply me with an abn? What are the rules around this?
Hello @Arnie45,
An ABN isn't mandatory for businesses but there are rules if they don't provide you with one.
If they're independent contractors, you'd withhold tax from their payment at 47%. This is called no ABN withholding.
Each payee needs to justify to you why you shouldn't withhold, and they can do this if they're eligible to provide you with a statement by supplier.
Hello @Arnie45,
An ABN isn't mandatory for businesses but there are rules if they don't provide you with one.
If they're independent contractors, you'd withhold tax from their payment at 47%. This is called no ABN withholding.
Each payee needs to justify to you why you shouldn't withhold, and they can do this if they're eligible to provide you with a statement by supplier.
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