AUSTRALIA: Extension of withholding tax on payments to foreign resident performing artists or athletes

In order to improve the compliance of foreign residents with their Australian income tax obligations the Statutory Rules regulations have extended the obligation to withhold withholding tax on payments to foreign performing artists or athletes.
Regarding artists and athletes the relevant payments are defined as: payments in respect of entertainment and sporting activities for performing artists or athletes As examples mentioning is made of: appearance fees, award for players of the series, bonuses, endorsement fees, expense reimbursements, match payments, non-cash prizes, performance fees, preparation fees, prize money, promotional fees and sponsorship.

The obligation to withhold does also apply to payments to support staff in respect of certain related activities, such as coaching, bodyguard, hairdresser, personal trainer and sport psychologist.

The rate of withholding is the company tax rate if the foreign
resident receiving the payment is a company and the individual non-resident marginal rate if the foreign resident is an individual.

The amendments will apply to payments made on or after 1 July 2004.