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 charged 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 charged. - Skip the TFN
If you choose not to provide your TFN, you will be taxed a TFN WHT rate of 47% on the additional income (interest on cash and dividends) you earn in your account.
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.