Income Tax Act 2007 section 452

The gross amount of a payment

Section 452 defines what is meant by the "gross amount" of a payment for the purposes of the chapter dealing with annual payments and patent royalties.

• The gross amount of a payment is the full amount before any income tax is deducted.
• Income tax is deducted at source from annual payments and patent royalties under specific rules.
• Whenever this chapter refers to the gross amount, it always means the pre-tax figure.
• This definition ensures consistency when calculating tax obligations on these types of payments.