Foreign Tax

Generally investors who are a non-resident of an overseas jurisdiction for tax purposes are subject to a maximum withholding tax rate on income they derive in that jurisdiction.

Under some tax treaties, where investors can be verified as an Australian tax resident, a reduced withholding tax or an exemption may be applied on this income in accordance with the prevalent Double Taxation Agreement (DTA) with the relevant jurisdiction.

We currently allow investors to lodge a form to verify their tax residency on certain listed investments (listed further below) where income is derived in the US, Ireland or Canada.

The non-resident foreign withholding tax rates* on income derived in the US and Ireland are as follows:

 

Maximum withholding tax rate

Reduced withholding tax rate

Income derived in Ireland25%0% (Exempt)
Income derived in the US30%15%
Income derived in Canada25%15%

*Current as at 23 January 2024 and subject to change.

Please note this process is only applicable to investors who hold an investment account with us. For members in our super products, you do not need to complete the form, as the trustee is able to complete the form and claim the benefit which is passed onto you.

US derived income

To be able to claim a reduced withholding tax rate on income derived in the US, the US Internal Revenue Service (IRS) requires certain documentation to be completed.

Forms required for income derived in the US:

Individual investors – Need to complete a W-8BEN form - Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding.

Entity investors – Need to complete a W-8BEN-E form - Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding. Entity investors include companies, trusts and self-managed superannuation funds.

Guides to help you when completing these forms:

Individual investors - Guide to completing W-8BEN individual US tax forms

Entity investors - Guide to completing W-8BEN-E entity US tax forms

You can also find further instructions on the IRS website.

US derived income FAQs

We currently allow the W-8BEN or W-8BEN-E form to be submitted for the following listed investments:

  • Resmed Inc – (RMD)
  • Vanguard All-World Ex-US Shares Index ETF (VEU)
  • Vanguard US Total Market Shares Index ETF (VTS)
  • Coronado Global Resources Inc (CRN)
  • Newmont Corporation (NEM)
  • News Corporation Class A Non-Voting (NWSLV)
  • News Corporation (NWS)
  • Arcadium Lithium PLC (LTM)
  • Alcoa Corporation (AAI)

No, only one form is required to be completed. Please note, each beneficial owner of a joint account must complete, sign and return a separate W-8BEN form.

Generally, the forms remain valid for three years after the date of signing until 31 December. For example, a form signed on 15 September 2023, will remain valid until 31 December 2026.

If any details on the form change it’s important to complete a new form with the updated details.

The signature must be an original signature signed by hand, however the form can be emailed or posted as per below details.

Forms can be returned via email to clients@cornerstoneportfolioservice.com.au

Or by post to: Cornerstone Portfolio Service, GPO Box 264, Melbourne VIC 3001.

Important note: When returning your completed form, please ensure you provide your full name and account number.

If the above forms are not completed or have been rejected, a higher rate of withholding tax will be applied to the investors income.

A form may be rejected for multiple reasons, some common errors are:

  • Not completing the form correctly/completely.
  • Making alterations or amendments to the form. If you make a mistake no correction fluid may be used, a new form will need to be completed.
  • Using the date in Australian format, this must be submitted in US date format eg 15 September 2023 would be 09/15/2023 in US date format.
  • Using a digital signature. You are allowed to complete the form digitally; however, the signature must be an original signature signed by hand.
  • Using a digital signature eg docusign.

If a form is rejected by the share registry, we’ll notify you. This will mean that the full withholding tax rate will be applied to your income. Any rejected forms can be resubmitted and will be processed with the Share Registry at the time of the subsequent dividend.

Prior to paying the income the share registry will withhold the applicable withholding tax rate.

Ireland derived income

Forms required for income derived in Ireland:

Australian investors will need to complete an Australian Tax Resident DWT Form which can be found on the Computershare website.

Guides to help you when completing these forms:

Guide to completing Irish Dividend Withholding Tax (DWT) forms

Investors can also refer to the James Hardie Investor Guide on the Computershare website for assistance in completing the Australian Tax Resident DWT form.

Where can investors find more information?

For more information you can also visit the Irish Revenue’s website at www.revenue.ie

Ireland derived income FAQs

We currently allow the DWT form to be submitted for the following listed investments:

  • James Hardie Industries PLC (JHX)

Generally, the forms remain valid for five years after the date of signing until 31 December. For example a form signed on 15 September 2023, will remain valid until 31 December 2028.

Digitally signed forms or faxed or photocopied forms cannot be accepted. Only original forms with original signatures are accepted. These forms can only be returned via post.

These forms can only be returned via post to Cornerstone Portfolio Service, GPO Box 264, Melbourne VIC 3001. 

Important note: When returning your completed form, please ensure you provide your full name and account number.

Canadian derived income

To be able to claim a reduced withholding tax rate on income derived in Canada, the Canadian revenue agency (CRA) requires certain documentation to be completed.

Forms required for income derived in Canada:

Australian investors will need to complete an NR301 form which can be found on the Computershare website.

Where can investors find more information?

Investors can refer to the Guide on the Computershare website for assistance in completing the form.

For more information you can also visit the CRA website here.

Canadian derived income FAQs

We currently allow the NR301 form to be submitted for the following listed investments:

  • SSR Mining Inc. (SSR)

Generally, the forms remain valid for three years after the date of signing until 31 December. For example, a form signed on 15 September 2023, will remain valid until 31 December 2026. If any of the details you provided on the NR301 form change, you must lodge a new NR301 form showing the new details.

The signature must be an original signature signed by hand, however the form can be emailed or posted as per below details.

These forms can be returned via email to clients@cornerstoneportfolioservice.com.au or by post to Cornerstone Portfolio Service, GPO Box 264, Melbourne VIC 3001

Important note: When returning your completed form, please ensure you provide your full name and account number. The HIN details do not need to be completed.

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