Capital Gains on Australian REIT for Non Australian Tax Payer

Lcosycatus on 03/05/2020 - 15:15
Last edited 04/05/2020 - 10:36 by 1 other user

Hi
I am a non Australian tax resident.

Quoting for search online "
capital gains made through share investments in Australia are generally not subject to Australian capital gains tax while you remain a non-resident for tax purposes. Bear in mind that if the company that you’ve invested in principally invests in property, or if you own more than 10% of the company, then your investment will be subject to capital gains tax "

Are Reits, eg Scenter, Goodman , vicinity centers considered under such a class?

• 

  SharedSugar on 03/05/2020 - 17:05

  -2

  I'm not sure how familiar you are with the Australian tax system, but be careful with income tax difference capital gains tax. Australia doesn't explicitly have a capital gains tax. We have income tax and capital gains rules that determine how capital gains are treated as income.I'm quite new to the area, but with the potential for international agreements this question seems like it could be quite complicated.

  • 

    mrvaluepack on 03/05/2020 - 19:07

    +1

    Please dont mislead people. Australia does have a capital gains tax system which is treated separately to income tax.

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  cosycatus on 03/05/2020 - 18:56

  "Australia doesn't explicitly have a capital gains tax"

  There is a CGT for tax resident.
  There is no CGT for NON tax resident, except possibly for stock that deals with property as what i quite above.

  my question is specifically with regards to non tax resident investing in stocks , explicitly REITs, is a CGT incurred?

  • 

    mrvaluepack on 03/05/2020 - 19:11

    There is no CGT for NON tax resident

    I only found this from Stockland's website but can't find anything on ATO or government websites:

    As a general rule, a non-resident investor (together with the investor’s associates) who does not
    hold at least 10% of the issued shares in a listed company or units in a unit trust (and has not held
    at least 10% for any 12 month period in the 24 months prior to the disposal), is not subject to
    Australian capital gains tax on disposal of those securities. Exceptions to that general rule can
    include investors that have previously been Australian residents and investors that have a
    permanent establishment in Australia. August 2015