- Client Partner/ Registered Conveyancer (Mandarin speaking)
Ming Gao
Frequently asked questions
Who is responsible for paying the foreign capital gains withholding amount?
The purchaser must withhold and pay 15% of the sale price to the ATO, if the vendor cannot produce a valid certificate.
Can a purchaser be penalised for not withholding 15%?
- Yes. The ATO can impose penalties and interest if the required amount is not withheld or paid correctly on time.
What is the difference between a Clearance Certificate and Variation Notice?
- Clearance Certificate: Clears the vendor from having to pay a withholding amount at settlement.
- Variation Notice: Varies the withholding rate from 15% to a lesser rate, resulting in a lower amount needing to be withheld and paid to the ATO.
What happens if a foreign resident vendor does not provide a clearance certificate?
The purchaser must withhold 15% of the sale price and remit it to the ATO. The vendor may later claim a credit through their tax assessment.
