Double Taxation Relief Manual: Guidance by country: Australia: Interest
Where the beneficial owner is in the other territory, a reduced rate of 10% withholding tax is payable.
However, under the Agreement, interest is payable gross where the beneficial owner is:
- the territory itself, a political or administrative sub-division thereof, a local authority, any other body exercising governmental functions in the territory or a bank performing central banking functions there
- a financial institution unrelated to and dealing wholly independently with the payer. There is a definition of financial institution: broadly a bank or similar enterprise. In cases of doubt, consult the wording of the Article.