Relief at source – eligibility, documentation, deadline - debt securities compliant with Section 128F - Australia
Withholding Tax
Standard rate of withholding tax: | 0% - 47.0% | Preliminary requirements / Holding restrictions: | No |
Eligible beneficial owners | Relief at Source | Quick Refund | Standard Refund |
Residents of Australia (a) | Yes | No | Yes |
Non-residents of Australia | Yes | No | Yes |
a. There is no relief at source or reclaim of withholding tax available through Clearstream Banking for undisclosed Australian residents.
Exemption at source - Overview
Clearstream Banking applies 0% withholding tax by default for securities compliant with Section 128F. No certification or tax instruction is required for non-resident beneficial owners to obtain this exemption.
However, Australian residents must provide their Tax File Number (TFN) or Australian Business Number (ABN) to Clearstream Banking in order to be eligible for the 0% rate.
Who can obtain exemption at source?
Beneficial owners can obtain an exemption from withholding tax on interest on Australian debt securities compliant with Section 128F of the Australian Income Tax Assessment Act 1936 as follows:
Eligible beneficial owners | Rate applicable at source |
Non-resident beneficial owners | 0% |
Residents of Australia | 0% |
If a request for exemption/relief at source has not been received by Clearstream Banking by the set deadline, Clearstream Banking will assume that the securities are held by non-resident beneficial owners and will apply 0% withholding tax by default.
Note: Australian residents must provide their Tax File Number (TFN) or Australian Business Number (ABN) to Clearstream Banking in order to be eligible for the 0% rate. Undisclosed Australian residents must, upon request of the customer, be subject to the maximum withholding tax rate (47.0%).
Documentation requirements
For exemption/relief at source from withholding tax, there are different documentation requirements depending on the residence status and legal status of the beneficial owner, as follows:
- Non-residents of Australia (not tax-exempt):
- Clearstream Banking applies 0% withholding tax by default for securities compliant with Section 128F. No certification or tax instruction is required to obtain this exemption for non-resident beneficial owners.
- Residents of Australia:
- Breakdown of Holdings
Note: Australian residents must provide their Tax File Number (TFN) or Australian Business Number (ABN) to Clearstream Banking in order to be eligible for the 0% rate. Undisclosed Australian residents may, upon request of the customer, be subject to the maximum withholding tax rate (47.0%).
Deadline for receipt of documents
Documentation for exemption at source from withholding tax on interest on Australian Commonwealth treasury bonds, semi-government securities or corporate bonds compliant with section 128F must be received by Clearstream Banking by the following dates:
Document | Deadline for receipt by Clearstream Banking |
Breakdown of Holdings | Three business days before each relevant payment date by 10:00 CET. |