Relief at source – eligibility, documentation, deadline - debt securities not compliant with Section 128F - Australia
Withholding Tax
Standard rate of withholding tax: | 10%/0%/47% | Holding requirements / restrictions: | No |
Eligible beneficial owners | Relief at Source | Quick Refund | Standard Refund |
Residents of Australia (a) | Yes | No | Yes |
Tax exempt beneficial owners | Yes | No | Yes |
Non-residents of Australia (not tax-exempt, not DTT) | 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
Exemption at source from withholding tax on interest from Australian Commonwealth treasury bonds, semi-government securities or corporate bonds that are not compliant with Section 128F of the Australian Income Tax Assessment Act 1936 is available through Clearstream Banking for eligible beneficial owners.
Who can obtain exemption at source?
Beneficial owners can obtain an exemption from withholding tax on interest on Australian debt securities not compliant with Section 128F of the Australian Income Tax Assessment Act 1936 as follows:
Eligible beneficial owners | Rate applicable at source |
Tax-exempt 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 10% withholding tax by default.
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%).
Exemption at source - 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):
- Request for Application of a Reduced Rate of Australian Withholding Tax on Interest Payments;
- Breakdown of Holdings (if applicable).
Note: For undisclosed holdings, the submission of documentation is optional for non-residents as Clearstream Banking by default applies the non-resident withholding tax rate on such holdings.
- Tax-exempt beneficial owners:
- Request for Application of a Reduced Rate of Australian Withholding Tax on Interest Payments;
- Breakdown of Holdings (if applicable);
- Certificate of Exemption (if applicable).
- Residents of Australia:
- Request for Application of a Reduced Rate of Australian Withholding Tax on Interest Payments;
- Breakdown of Holdings (if applicable).
Note: Undisclosed Australian residents may, upon request of the customer, be subject to the maximum withholding tax rate (47.0%).
Exemption at source - 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 must be received by Clearstream Banking by the following dates:
Document | Deadline for receipt by Clearstream Banking |
Request for Application of a Reduced Rate of Australian Withholding Tax on Interest Payments | Three business days before the first payment date by 10:00 CET. |
Breakdown of Holdings | Three business days before each relevant payment date by 10:00 CET. |
Certificate of Exemption | Three business days before the first payment date by 10:00 CET. |