Australia: Guidance on claiming foreign resident capital gains withholding tax credit
Advisory for residents who sold property without clearance certificate claiming foreign resident capital gains withholding tax credit
June 25, 2024
The Australian Taxation Office (ATO) issued an advisory for Australian residents who sold property without a clearance certificate claiming withheld foreign resident capital gains withholding (FRCGW) amounts as a tax credit.
- When completing their tax return, residents must:
- Submit a copy of the payment confirmation from the purchaser
- Declare their Australian assessable income, including any capital gain or loss from the disposal of the asset
- Claim a “credit for foreign resident capital gains withholding amounts” taken from the sale proceeds
- The amount will be refunded in full if:
- There are no tax debts
- No capital gains tax is due on the sale of the property