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ATO Interpretative Decision

ATO ID 2002/203 (Withdrawn)

Income Tax
Exempt Australian sourced superannuation pension - Pay As You Go withholding

Attention This ATO ID is withdrawn. Guidance on the issue contained in this ATO ID can be found at the following PAYG withholding obligations.
Attention This document has changed over time. View its history.
FOI status: may be released
Status of this decision: Decision withdrawn 31 March 2017.

CautionCAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.


Issue

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?

Decision

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.

Facts

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.

Reasons for Decision

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.

Amendment History

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 decision: 3 October 2001

Legislative references:
Taxation Administration Act 1953
   subsection 12-1(1) in Schedule 1
   section 12-80 in Schedule 1

Keywords
Foreign pension income
Non resident individuals
PAYG withholding under retirement payments, eligible termination payments & annuities category
PAYG withholding
Superannuation pension income

Siebel/TDMS reference number: DW297859; 1-5CFVVGW; 1-B1FXDKK

Business line: Small Business/Individual Taxpayers

Date of publication: 28 February 2002

ISSN: 1445-2782

ATO ID 2002/203 (Withdrawn) history   Top  
   Date   Version 
    3 October 2001   Original statement   
   13 June 2014   Updated statement   
 You are here ®  31 March 2017   Withdrawn   


 


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