What is a Foreign Resident Capital Gains Withholding Clearance Certificate?
It is a clearance certificate issued by the Australian Tax Office to a Vendor when selling a property to ensure Foreign Resident capital gains withholding tax is not withheld on settlement for Australian Residents.
Do I need to apply for a Foreign Resident Capital Gains Withholding Clearance Certificate?
Yes – every owner must apply for a clearance certificate when selling a property in Australia. If you do not obtain a Foreign Resident Capital Gains Withholding Clearance Certificate the ATO will withhold 15% of the market value on settlement of the property.
How do you apply for a Foreign Resident Capital Gains Withholding Clearance Certificate?
It is free to apply and easy to do via the ATO website.
Why did the Australian Government introduce the Foreign Resident Capital Gains Withholding Tax Clearance Certificate?
The ATO introduced the clearance certificate to ensure the Australian Government captures capital gains tax on the sale of Australian property by Foreign residents.
At SA Listings we assist all our clients with their Foreign Resident Capital Gains Withholding Clearance Certificate applications. If you are interested in finding out more about SA Listings and how we operate differently to your traditional Real Estate Agency visit www.salistings.com.au
Justine Thomson
salistings.blog 