42Royalty payments

#### 42 Royalty payments The amount to be withheld under section 12‑280 or 12‑285 of Schedule 1 to the Act from a royalty is: (a) if the person to whom the royalty is paid, or a foreign resident mentioned in paragraph 12‑285(1)(b) of that Schedule, is a resident of the other party to an international tax sharing treaty that applies to the royalty—the amount calculated at the rate provided for in the treaty; and (b) if paragraph (a) does not apply, but the person to whom the royalty is paid, or a foreign resident mentioned in paragraph 12‑285(1)(b) of Schedule 1 to the Act, is a resident of the other party to a double tax agreement—the amount calculated at the rate provided for in the agreement; and (c) if paragraphs (a) and (b) do not apply, but the person to whom the royalty is paid, or a foreign resident mentioned in paragraph 12‑285(1)(b) of that Schedule, is a resident of a country other than Australia—30% of the amount of the royalty; and (d) if the person to whom the royalty is paid is a resident of Australia—30% of the amount of the royalty.