Australia: Guidance on claiming foreign resident capital gains withholding tax credit

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
  • There are no tax debts
  • No capital gains tax is due on the sale of the property

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