Expanding List of Information Exchange Countries
The Government has announced an update to the list of information exchange countries. Tax residents in the listed countries access the reduced Managed Investment Trust (MIT) withholding tax rate of 15% rather than the default rate of 30% for certain fund payments made by Australian MITs to overseas investors.
The current MIT regime provides for the reduced withholding tax rate for 122 listed countries which have established a legal relationship with Australia, enabling them to share taxpayer information with the Australian revenue authorities. This update will add the Dominican Republic, Ecuador, El Salvador, Hong Kong, Jamaica, Kuwait, Morocco, North Macedonia and Serbia to the list, and will be effective from 1 January 2021. It will also remove Kenya from the list as it has not yet entered into an information sharing agreement with Australia.