PAYG Withholding and Foreign Employment Income

An Instrument has been registered ensuring PAYG withholding from payments made to individuals employed in foreign countries closely approximate the Australian income tax payable on the relevant foreign employment income.

Since 1 July 2009, employers are required to withhold amounts from salaries, allowances, bonuses and commissions paid to their employees deriving non-exempt foreign employment income.

The amount to be withheld will be calculated under the relevant PAYG withholding tax table, less any amount of tax to be withheld and paid to a foreign country.

The Instrument applies from 15 July 2009.