Check foreign resident capital gains withholding on a share or asset acquisition
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the sale agreement, the target’s asset register and the vendor’s residency information, list each asset or interest being acquired, flag those that may be taxable Australian real property or indirect Australian real property interests, record whether the vendor has supplied a clearance certificate or declaration, and calculate the amount the purchaser would have to withhold at the current rate on the contract value.
- What the lawyer must review
- The lawyer decides whether the shares or assets are taxable Australian property (including whether the target is land-rich for the indirect interest test), whether a clearance certificate or vendor declaration is valid and current, and settles the withholding mechanics in the agreement and the completion steps.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the sale agreement, the target’s asset register and the vendor’s residency information, list each asset or interest being acquired, flag those that may be taxable Australian real property or indirect Australian real property interests, record whether the vendor has supplied a clearance certificate or declaration, and calculate the amount the purchaser would have to withhold at the current rate on the contract value. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Check the contract date to confirm which rate applies.
- Confirm any clearance certificate covers the vendor entity and is current at settlement.
- Check the agreement lets the purchaser withhold and pay without breaching the price clause.
Forms and precedents for this task
| Form or precedent | Kind | AI use | Summary |
|---|---|---|---|
| Foreign resident capital gains withholding checklist for a share or asset acquisition | Checklist | AI use Yellow | A checklist for the purchaser: clearance certificates for taxable Australian real property, and residency or non-IARPI declarations for other assets, including shares that may be indirect Australian real property interests. |
Signed-in accounts can read the full text of each one. All precedents.
Sources
- ATO — Foreign resident capital gains withholding overview · 2026-10-18
- ATO — Australian residents and clearance certificates · 2026-10-18
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.