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Dividend Withholding Tax Refund

Newbie

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Replies 3

Hello,

 

I am not an Australian citizen and would like to do a withholding tax refund on dividends.

 

1.
In the refund form "Refund of over-withheld withholding application", item 17 asks for a "Securities clearance account number". What exactly is this?

 

2.
Paragraph 31 asks for the enclosed attachments. Which of the four choices is mandatory?

 

Thank you very much for your support.

 


Best regards,
Justin

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 2

Hi @JustinMes

 

Before you submit the form I just want to check that you are aware you do have to pay withholding tax on the unfranked component of any dividend payments received.

 

Regarding the form to apply for the refund of any overpaid withholding tax:

 

1. The "Securities clearance account number" is referring to the bank account used by the ASX approved clearing house who handles the transactions for your payer.  You will need to contact the company who has paid you the dividends to obtain this information.

 

2. At item 31 on the form I'm looking at there are only two attachment options. If you have not received payments from a Managed Investment Trust (MIT) you would select the first option and supply the dividend payment advice statement from your payer.

 

Here is the link to the form I'm viewing: Refund of over-withheld withholding application

 

I hope that helps.

 

RichATO

 

 

3 REPLIES 3

Most helpful response

ATO Certified Response

ATO Community Support

Replies 2

Hi @JustinMes

 

Before you submit the form I just want to check that you are aware you do have to pay withholding tax on the unfranked component of any dividend payments received.

 

Regarding the form to apply for the refund of any overpaid withholding tax:

 

1. The "Securities clearance account number" is referring to the bank account used by the ASX approved clearing house who handles the transactions for your payer.  You will need to contact the company who has paid you the dividends to obtain this information.

 

2. At item 31 on the form I'm looking at there are only two attachment options. If you have not received payments from a Managed Investment Trust (MIT) you would select the first option and supply the dividend payment advice statement from your payer.

 

Here is the link to the form I'm viewing: Refund of over-withheld withholding application

 

I hope that helps.

 

RichATO

 

 

Newbie

Replies 0

Hi @RichATO,


Thank you very much for your quick reply.

Regarding the "Securities clearance account number".
Is there a summary list of all listed Australian companies and their securities clearance account numbers?

 

I also noticed another question:
I hold shares in CSL ltd. with a Franked Percent of 0%. However, no withholding tax has been withheld from me. Is this correct?

 

 

Best regards,
Justin

ATO Community Support

Replies 0

Hi @JustinMes,

 

As @RichATO advised, for the securities clearance account no' you will need to contact the company who has paid you the dividends to obtain this information.

 

For the franked amount, the dividend is paid with a tax credit attached so investors avoid double taxation of dividends. Generally you need to declare your dividend income and the franking credit amount, but will only be taxed on the dividend portion. As a foreign resident the share company usually withholds tax from unfranked dividends.

 

You can use the links below for further information.

 

Links-

myTax dividend income.

Dividends, interest and investments.

 

All the best.