12‑385 Withholding by withholding MITs12‑385 Withholding by withholding MITs

12‑385 Withholding by withholding MITs

(1) A trustee of a trust that is a *withholding MIT in relation to an income year that makes a *fund payment in relation to that income year to an entity covered by section 12‑410 must withhold an amount from the payment.

Note 1: An entity may be covered by section 12‑410 if the entity has an address outside Australia or payment is authorised to be made to a place outside Australia.

Note 2: If the payment is made to a recipient not covered by section 12‑410, the trustee is required to give a notice to the recipient or publish information on a website setting out certain details about the payment: see section 12‑395.

(2) The amount the trustee must withhold is:

Start formula *Fund payment times Rate applicable under subsection (3) end formula

(3) The rate is: (a) if the address or place for payment of the recipient is in an *information exchange country: (i) 15% for *fund payments (except to the extent mentioned in subparagraph (ii) or (iii)); or (ii) 10% for fund payments, to the extent that they are, or are attributable to, fund payments from a *clean building managed investment trust (except to the extent mentioned in subparagraph (iii)); or (iii) 30% for fund payments, to the extent that they are attributable to *non‑concessional MIT income (see section 12‑435); or (b) otherwise—30%. (4) An information exchange country is a foreign country or foreign territory specified in the regulations for the purposes of this section. (5) This section does not apply to an amount paid by a *withholding MIT to the extent that no *managed investment trust withholding tax is payable in respect of the payment or an amount reasonably attributable to the payment.