For clients of Trading 212 AU Pty Ltd, the tax treatment of additional income, such as interest on cash or dividends, depends on whether you have provided a Tax File Number (TFN).
Here are your options👇
- Provide a TFN: If you provide your TFN, no withholding tax (TFN WHT) will be applied on the interest or the dividends paid.
- Declare an exemption: If you have an exemption (e.g., Centrelink or other pension), confirm your exemption status in the app, and no TFN WHT will be applied.
- Skip the TFN: It is not compulsory to provide your TFN however, if you choose not to provide your TFN, a TFN WHT rate of 47% will be applied on the additional income (interest on cash and dividends) you earn in your Trading 212 account.
📄 Note
Trading 212 collects your TFN to comply with Australian taxation laws, ensuring correct tax withholding, and for reporting to the Australian Taxation Office (ATO).
This is permitted under the Taxation Administration Act 1953 and Income Tax Assessment Act 1936. TFNs are handled in line with the Privacy Act 1988 and Australian Privacy Principles (APPs).
Why is the withholding tax applied?
This requirement is mandated by Australian tax laws for accurate reporting of income.
Where do I find my TFN?
You can check your Tax File Number on the following documents:
- Notice of assessment
- Superannuation Statements
- Payment Summaries from Employer
- MyGov Account
- Previous Tax Returns
Can I provide my TFN later?
Yes, you can add your TFN at any time:
- Go to Menu
- Select Settings
- My account
- Provide the TFN under Tax number.
Once done, the 47% TFN withholding tax will no longer be applied.
Can I reclaim the tax already paid?
Any TFN WHT, that has already been deducted, will be sent to the Australian Taxation Office (ATO). You may be able to reclaim the deductions when you file your tax return at the end of the financial year.
Whether you can reclaim it depends on your personal circumstances and you should seek tax advice on the matter.