FRCGW (Foreign Resident Capital Gains Withholding) Clearance Certificate
ALL property sellers in VIC need to obtain FRCGW (Foreign Resident Capital Gains Withholding) Clearance Certificate(s). With the certificate, sellers are exempted from the withholding obligations.
Otherwise, they are required to withhold 15% of the contract price / market value* to the Australian Taxation Office (ATO).
*Market value is usually the sale price or a price as advised in a valuation report prepared by a professional valuer.
What we could do to assist property seller & buyer is compliance.
For Australian residents selling property, Livable Conveyancing can facilitate the lodgement of the Foreign Resident Capital Gains Withholding (FRCGW) Clearance Certificate for exemption or variations of the tax withholding amount.
Note: The application process can be complex, and if an Australian resident has spent a considerable amount of time overseas, it may affect the outcome. Each application will be assessed on a case-by-case basis. Contact us for assistance, and our staff will be happy to help.
For non-Australian Citizen or Permanent Resident selling a property, Livable Conveyancing can assist you with FRCGW compliance by lodging the purchaser payment notification form, making sure the correct amount of tax is withheld at settlement.
For property buyers, we would ensure that the vendor has fulfilled their FRCGW withholding obligations, so that the correct amount of tax is withheld at settlement.
If you have any questions or would like to engage our service, feel free to contact us.
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