Scenario: Taxpayer who is a non-Australian resident and has interest income.
If the person was outside Australia when he received interest then amount would be taxed at 10% and would be displayed in Non-resident withholding tax section.
To accomplish this, the user should select a country other than Australia in the interest worksheet via item 10 Gross Interest.
Select YES or NO in the line item "Treaty Country", according to the applicable country of residence that you have selected. Here is ATO link related to Income Tax Treaties for your reference: https://treasury.gov.au/tax-treaties/income-tax-treaties.
After that data in LodgeiT and in NoA would be the same.
In this case, there is 10% tax on interest income for non-residents.
User doesn't need to include interest income in non-resident taxpayer's tax return.
Please see ATO related article -
Interest income for foreign residents should be included only when the person was an Australian resident when income had been received. Otherwise Income may not be included. But if it will be included, then no tax payable will be calculated on this amount. It will be shown only in NRWT section.
For interest and dividends for non-residents there is a section at the bottom of "Estimate" page. Non-resident withholding tax. Calculation of interest and dividends is presented here.
Tax payable is not sent to ATO. And after about two weeks ATO will send "Notice of Assessment".
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