Exemption or lower-rate certificate
Stopping excess withholding at source when your income is exempt or taxed at a lower rate.
When this applies
Tax is being deducted on income that is exempt, taxed at a lower rate, or covered by a 100% tax credit.
Time limits, fees and sections
| Item | Rule | Section |
|---|---|---|
| Companies | Commissioner must decide within 15 days; otherwise deemed issued through IRIS | s.159(1) provisos |
Step-by-step procedure
The section of law behind each step is shown beside it.
- 1Check eligibilitys.159(1)
Exemption, lower rate or full tax credit.
- 2Applications.159(1)
Prescribed form on IRIS with evidence.
- 3Certificates.159
Share it with the withholding agent.
Documents to prepare
- Evidence of exemption or lower rate
- Projected income and taxes
Practical tips
- Apply early in the year so deductions stop before cash is tied up