Understanding Your Australian Royalty Withholding Tax Summary

Australian Royalty Withholding Tax (AU RWT) Summaries

Envato Twenty20 Pty Ltd (an Australian company) acquired Twenty20 on 10 April 2019. 

As an Envato Twenty20 Pty Ltd author, you are selling your items to Envato, an Australian resident company and therefore the Australian royalty withholding tax applies. If your country does not have a tax treaty with Australia, the rate of royalty withholding tax applied to your payouts is 30%.

 

What appears on the AU RWT tax summary?

The AU RWT tax summary  provides a statement  of your royalty earnings from Envato Twenty20 Pty Ltd  as well as withholding tax paid to the Australian Taxation Office (ATO) on your behalf. You may use this information in completing your tax return, so make sure you give it to your tax advisor/accountant.

The earnings and taxes are reported in AUD and relate to the earnings that were paid to you during the period from 1 July 2020 to 30 June 2021 (the 2021 financial year or FY21).

 

What do the figures mean?

The amounts shown as income are your total earnings subject to withholding tax for the period 1 July 2020 to 30 June 2021. The amounts shown as tax paid is the withholding tax that Envato deducted from your earnings and paid to the ATO on your behalf.

 

Why did I not get an AU RWT tax summary?

Either you did not have payouts during the period or you are an Australian resident and are therefore not subject to Australian royalty withholding tax  (Australian royalty withholding tax only applies to payments made to non-residents by an Australian resident taxpayer).

 

When will I get my tax summary?

Your tax summary will be made available by 14 July. We will notify you via email and provide a  secure link to access your form.

 

Can I get the tax summary for a different period so that it matches the financial year of my country?

No. The tax summary is an annual requirement imposed by the ATO and  must align with the Australian financial year (i.e. 1 July to 30 June).

 

What do I do with my tax summary?

You may use this information to claim a credit or foreign tax offset to reduce tax payable when completing your tax return.  The tax rules in relation to claiming tax credits differ in each country so be sure you give this document to your tax advisor/accountant to determine your eligibility to claim a credit.  

 

When do I get my money back?

Depending on whether you have other earnings (apart from your earnings from Envato), your personal tax rate and your country’s tax rules, you may be entitled to a refund on some of the taxes paid after you lodge your tax return with the tax authority in your country.

 

My AU RWT Form says royalties of $X but I received a lower amount. Why is that?

The earnings amount displayed on your AU RWT tax summary  is your gross (or total) royalty earnings from 1 July 2020 to 30 June 2021 in Australian dollars (rather than US dollars). This is the total earnings you were entitled to over the course of the year through Envato Twenty20 before deductions for taxes.

The USD amounts are also shown on the statement for your convenience.

  


 

If you have any questions, please contact our Customer Support team.

 

 

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