Australia: Guidance on claiming credit for foreign resident capital gains withholding from property sale
Taxpayer must file return to claim credit.
The Australian Taxation Office (ATO) released a guide on how to claim foreign resident capital gains withholding (FRCGW) from a property sale as a credit.
The guide provides that if there is an amount withheld under FRCGW, Australian and foreign resident vendors need to file a tax return to claim the credit that was withheld, even if their income is below the filing threshold.
The FRCGW credit amount will be refunded in full if:
- There are no tax debts.
- There is no capital gains tax payable on the sale of the property.
- There is no tax payable on any other Australian-source income (for foreign residents only).