Expanding List of Exchange of Information Countries
The Government has announced the expansion of the Exchange of Information (EOI) list allowing residents in listed countries to gain access to the reduced rate withholding tax rate of 15% rather than the default 30%, in respect of qualifying distributions from Australian Managed Investment Trusts (MIT).
The current Australian MIT regime provides for the reduced withholding tax rate for 114 listed countries which have established a legal relationship with Australia enabling them to share taxpayer information.
This expansion will add Curacao, Lebanon, Nauru, Pakistan, Panama, Peru, Qatar and the United Arab Emirates to the list and will be effective from 1 January 2020.
With the addition of eight further countries to the EOI list, this measure makes the MIT regime more attractive to a number of new international investors whilst also reinforcing the Government’s commitment to international tax transparency.