WEB CGT Discount for Foreign Residents
Capital Gains Tax for International Investments
Under the Australian tax system, foreign residents are entitled to a 50% discount on capital gains tax (CGT) on the sale of certain Australian assets, including real estate, shares, and other eligible investments. This discount applies to foreign residents who have held the asset for at least 12 months and meet certain eligibility criteria.
Do Australian Expats and Foreign Residents Need to Pay CGT on Shares in Australia?
Yes, Australian expats and foreign residents who sell shares in Australia are subject to CGT. However, they are eligible for the 50% CGT discount if they meet the eligibility criteria.
Foreign Resident Capital Gains Tax (WHT)
In some cases, foreign residents may be subject to a withholding tax (WHT) of 10% on the gross sale proceeds of certain Australian assets, including shares. This is a non-final tax, and foreign residents can apply for a refund of any excess tax paid.
Impact of Foreign Investment Taxes
Foreign investment taxes can be complex and vary depending on the country of residence. It is essential to seek professional advice to understand the tax implications of investing in Australia as a foreign resident.
Considerations for Australian Resident Taxpayers
Australian resident taxpayers who are entitled to a 50% CGT discount on capital gains on foreign investments should be aware that this discount may not apply to all foreign assets.
Calculate Your CGT Liability
You can use the Australian Taxation Office (ATO) Capital Gains Tax Calculator to estimate the amount of CGT you may need to pay on the sale of an asset.
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