January 2026 third edition
The seven-page guide clarifies section 45/similar non-resident payments excluding directors’ fees, which generally accrue at AGM approval and have separate guidance. Its cover carries an unrelated donations running heading; the actual title/content governs. It replaced 31 March 2003 guidance, first issued 8 November 2021 and was revised 18 August 2022/30 January 2026.
Earliest of three dates
Use earliest of contractual due/payable liability (invoice date if no agreement), credit/reinvestment/accumulation/capitalisation/reserve or other dealing on non-resident’s behalf, and actual payment. Interest under 45(8)(b) can be deemed paid without cash. Royalty, management, remuneration, professional/service payments have related 45 A–45 H provisions.
Contract royalties and demand condition
Royalty 5% of sales payable quarter-end is deemed paid last day of each quarter. If the agreement instead requires demand or voluntary payment, use printed demand-note date or voluntary-payment date, not automatically quarter-end. Section 14(1) deduction likewise follows demand/voluntary payment in that example, with 14(1)(a) potentially applying to interest.
Invoice and credit terms example
Without contractual payment date, use PRINTED invoice date. An extension/credit terms delays cash, not liability. Management invoice dated 1 March, received 5 March, with 30-day credit but paid 15 March, has deemed date 1 March. Do not use receipt or processing date.
Mere accounting accrual
An accounting accrual alone does not trigger withholding where liability has not arisen. For FY ending 31 October 2021 and quarterly interest due 31 March/30 June/30 September/31 December, October accrual is not due until 31 December, so no trigger at accrual. The 2022 amendment deleted earlier assertions denying a corresponding deduction; do not restore those deleted words.
All three no-cash examples
On 30 September 2021, payee B asks payer A to credit a designated account instead of cash: deemed paid that day. Paying B’s subsidiary C to settle B’s liability also triggers that day. Agreement to capitalise the interest into principal on that day likewise triggers. Settlement form does not defer the obligation.
Deadline, electronic filing and penalties
File/pay by 15 th of SECOND month after payment/deemed payment; e-filing mandatory from 1 July 2016. Late receipt attracts 5%; after 30 days unpaid, further 1% for each completed month may apply, maximum 15% additional. Keep contractual, invoice and ledger evidence to select date before calculating deadline. The 2026 edition includes corporate/individual/procedure contact numbers; check current contact routes before relying on printed numbers.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
Read the official PDF ↗