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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2833
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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Need a clearance for foreign resident holding tax, Am

Customer Question

need a clearance for foreign resident holding tax
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: Am selling housr and settlement agent states we need a clearance certificate from ATO
JA: Is there anything else the Accountant should be aware of?
Customer: only that we are Australian citizens and have lived in WA for over 40 years
Submitted: 1 month ago.
Category: Tax
Expert:  Barbara replied 1 month ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

The foreign resident capital gains withholding clearance certificate application form is used by Australian resident vendors to notify us that the foreign resident capital gains withholding does not need to be withheld from the sale of taxable Australian real property (the asset). It provides the details of vendors so we can establish their tax residency status.

The form needs to be completed and lodged with ATO as early as practical. The vendor will have to provide the purchaser with an ATO issued clearance certificate on or before the day of settlement of the sale of the asset to ensure no withholding occurs.

Vendors may either complete and lodge the form themselves or have it completed and lodged on their behalf by a third party, for example a solicitor or an accountant.

https://www.ato.gov.au/uploadedFiles/Content/LB_I/downloads/FRCGW%20-%20clearance%20certificate%20application.pdf

The following link contains excellent information you will find helpful:

https://www.ato.gov.au/Forms/Foreign-resident-capital-gains-withholding-clearance-certificate-application-instructions/

Please let me know if I can assist you further.

Thank you and best regards,

Barb