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16 May 2020
I'm currently looking to commission a freelance music composer to create one instrumental song track for a song I wrote with lyrics.
I have received an email from one composer in particular whom I'm considering to work with but I'm concerned about whether I would need to withhold tax on her behalf as....
1. She currently resides in Turkey and will be creating her work from there (Outside Australia)
2. She does NOT have a VAT number/Tax File Number for her services.
3. I'm only paying her ONCE for the individual track and she has informed me to pay her in USD of $150.
So, would I need to withold tax on her behalf?
If anyone could help me with my question ASAP that would be great!
22 May 2020
You wouuld not need to withhold tax as the payee is a foreign resident and does not carry on an enterprise in Australia.
We have more information on when to withhold tax.
Australian Taxation Office
Working for all Australians