HSBC Overseas Address NRWT
Jul 4th 2017, 9:36 am
#1
Forum Regular
Thread Starter
Joined: Jul 2010
Posts: 280
HSBC Overseas Address NRWT
Hi, has anyone got an Australian HSBC account while living in the UK but still an Australian citizen.
Have you noticed if your bank is withholding 10% non residents withholding tax from any interest paid at source.
I ask because as a UK national living in the UK, but receiving interest from savings in Australia.
I am wondering whether this tax is payable. Due to any tax treaty they have in place.
https://www.ato.gov.au/Individuals/I...and-royalties/
Tax rates for foreign residents - Interest
Treaty countries
Some agreements provide an exemption from withholding tax in certain circumstances.
Non-treaty countries
10%
Have you noticed if your bank is withholding 10% non residents withholding tax from any interest paid at source.
I ask because as a UK national living in the UK, but receiving interest from savings in Australia.
I am wondering whether this tax is payable. Due to any tax treaty they have in place.
https://www.ato.gov.au/Individuals/I...and-royalties/
Tax rates for foreign residents - Interest
Treaty countries
Some agreements provide an exemption from withholding tax in certain circumstances.
Non-treaty countries
10%
Last edited by sign; Jul 4th 2017 at 10:33 am.
Jul 4th 2017, 11:07 am
#2
BE Forum Addict
Joined: Sep 2005
Posts: 1,200
Re: HSBC Overseas Address NRWT
Yes Australia will deduct a 10% withholding tax from any interest. You then declare this to UK on your tax return and only then pay any extra due. The 10% is taken into account so you don't pay twice.
Jul 6th 2017, 1:23 am
#3
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: HSBC Overseas Address NRWT
Yes, the Tax Treaty between the UK and Australia provides for a 10% rate of withholding tax on interest paid from a bank in one jurisdiction to a tax resident of the other.
As rammygirl says, the gross interest is also taxable in the UK with a credit for the 10% already suffered - subject to a consideration of whether or not you are UK domiciled, the use of the remittance basis, and the de minimus level of income for unremitted amounts.
Best regards.
As rammygirl says, the gross interest is also taxable in the UK with a credit for the 10% already suffered - subject to a consideration of whether or not you are UK domiciled, the use of the remittance basis, and the de minimus level of income for unremitted amounts.
Best regards.
