April 4 2019
If you sell a property and the sale price is $750,000 or more your conveyancer will apply for a Foreign Resident Capital Gains Tax Clearance Certificate (FRCGCC) on your behalf.
The FRCGCC is obtained from the Australian Taxation Office (ATO) and is required to be obtained by all vendors whether they are an individual, a company, a trust or a super fund and whether they are resident in Australia or not.
The FRCGCC is valid for 12 months. If a FRCGCC is not provided by a vendor, the purchaser is required to withhold 12.5% of the purchase price and pay this withheld sum to the ATO. If there is an obligation for the purchaser to withhold monies, they must do so and pay the withheld monies to the ATO at settlement of the property transaction, late payments may result in further interest charges and late penalties.
If a purchaser is required to withhold monies and they fail to, they may be issued with a penalty by the ATO which can be equal to the amount they were required to withhold.
Call us +61 3 7002 6228
Mobile 0411 888 926
Email us click here
Visit us Raglan House, 4/27-33 Raglan Street
South Melbourne VIC 3205 map
Accessible Conveyancing acknowledges the First Nations People paying respect to Elders past, present and future as the traditional custodians of this land. We live, learn and work on the lands of the Bunurong and the Dja Dja Wurrung people of the Kulin Nation. 