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Under Pay As You Go (PAYG) withholding, should an amount be withheld under section 12-80 in Schedule 1 to the Taxation Administration Act 1953 (TAA 1953) from an Australian sourced superannuation pension, which is exempt from tax in Australia?

No. Under PAYG withholding, an amount should not be withheld under section 12-80 in Schedule 1 to the TAA 1953 from an Australian sourced pension, which is exempt from tax in Australia.

The taxpayer is a non-resident for Australian tax purposes.

The taxpayer receives an Australian sourced superannuation pension, which is exempt from tax in Australia under the relevant double tax agreement.

Section 12-80 in Schedule 1 to the TAA 1953 provides that a payer is to withhold an amount from superannuation pension payments made to an individual.

However, subsection 12-1(1) in Schedule 1 to the TAA 1953 provides that an amount need not be withheld under section 12-80 from a payment if the whole of that payment is exempt income in the hands of the person receiving the payment.

The taxpayer's Australian sourced superannuation pension is exempt from income tax in Australia under the relevant double tax agreement, therefore PAYG withholding amounts will not need to be withheld from the pension under section 12-80 in Schedule 1 to the TAA 1953.

Date of amendment Part Comment 13 June 2014 Title, Issue, Decision, Facts and Reasons for Decision Adjusted wording to better reflect the legislation. Legislative References Updated format of legislative references. Related ATO ID Removed ATO ID 2002/202 as it is withdrawn

Date of amendment | Part | Comment

13 June 2014 | Title, Issue, Decision, Facts and Reasons for Decision | Adjusted wording to better reflect the legislation.

Legislative References | Updated format of legislative references.

Related ATO ID | Removed ATO ID 2002/202 as it is withdrawn