Royalty withholding tax exemption
Payments made to non-residents by Australian resident companies for the lease of eligible vessels on a bareboat basis (vessel leased without a crew) are exempt from royalty withholding tax. This aims to reduce the costs for Australian shipping companies when leasing foreign vessels on a bareboat basis, which is expected to increase the ability of Australian operators to crew those vessels with Australian workers.
The exemption from royalty withholding tax will only apply if the following criteria are fulfilled:
