• Update income tax withholding

    This screen enables you to update information associated with your income tax withholding (ITW) details. Fields which can be updated will display the existing information.

    The Business Portal validates your user status and determines your level of authorisation accesses. Only the roles, branches and related information you are authorised to view and/or update will be displayed.

    Effective date

    This is the date of commencement for the ITW tax type. This date cannot be updated in portal.

    Estimated number of employees

    This is the total number of individuals you think you will be making payments to. This information assists in the distribution of payment summaries at the end of the financial year. Do not include payments to people under a voluntary agreement or labour hire arrangements.

    Valid characters are 0-9.

    Annual withholding amounts

    This is the amount previously advised as the estimated amount that will be withheld from payments to employees each year. This amount cannot be updated in portal.

    Reporting method

    This is the method you will use to provide the ATO with your ITW payment summary annual report.

    A payment summary form is a form given to all employees and payees detailing total payments made and amounts of tax withheld each year.

    To update this field, make a selection from the drop down list. The following is an explanation of the methods available:

      Method  

      Explanation 

    Not yet decided

    Unknown.

    ATO paper/Paper rep

    Report to the ATO on paper and give ATO payment summaries to payees.

    ATO paper/Elect rep

    Report to ATO electronically and give ATO payment summaries to payees.

    Self print/Elect rep

    Report to ATO electronically and print out payment summaries on plain paper to give to payees.

    Computer bureau

    Will use a payroll service or bureau.

    No summaries reqd

    Do not need to lodge payment summary annual report and do not require any payment summaries.

    Royalties

    This question seeks to establish whether you will pay royalties, dividends or interest to non-residents or report investment income paid to Australian residents.

    • A ‘Yes’ or ‘No’ response is mandatory.
      • If ‘Yes’ is selected, the investment report type will also need to be selected.

    Investment report type

    This is the method you will use to report to the ATO payments of royalties, dividends or interest to non-residents or report investment income paid to Australian residents.

    Make a selection from the drop down list. The following is an explanation of the methods available:

      Method  

      Explanation 

    No investment report obligation

    The entity will not make investment type payments.

    Not yet decided

    Unknown.

    AIIR/Royalty - paper

    Report on paper (using ATO forms) both:

    • all investment income on an ‘Annual investment income report’ (AIIR)
    • royalties paid to non-residents.
     

    AIIR/Royalty - electronic

    Report electronically both:

    • all investment income in an ‘Annual investment income report’
    • royalties paid to non-residents.
     

    AIIR electronic

    Report electronically – all investment income in an ‘Annual investment income report’.

    Royalty electronic

    Report electronically - only dividend, interest and royalties paid to non-residents.

    AIIR elec/Royal pap

    Report electronically - investment income in an ‘Annual investment income report’

    Report on paper (using ATO forms) - royalties paid to non-residents.

    AIIR paper

    Report on paper (using ATO forms) - all investment income in an ‘Annual investment income report’.

    Royalty paper

    Report on paper (using ATO forms) - dividends, interest and royalties paid to non-residents.

    To complete this transaction:

    Electronically sign the declaration page using your digital signature.
    Note: You need to sign the transaction with the credential you logged in with.

    If you need more information about the details that are displayed on the screen, refer to Definitions.

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We are committed to providing you with advice and guidance you can rely on, so we make every effort to ensure that what we give you is correct.

If you follow our advice or guidance and it turns out to be incorrect, or it is misleading and you make a mistake as a result, we will take that into account when determining what action, if any, we should take.

Some of the advice and guidance on this website applies to a specific financial year. This is clearly marked. Make sure you have the information for the right year before making decisions based on that information.

If you feel that our advice and guidance does not fully cover your circumstances, or you are unsure how it applies to you, contact us or seek professional advice.

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© Australian Taxation Office for the Commonwealth of Australia

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).