way2aus

If someone living in australia works for a US company remotely and the salary is deposited in a foreign account, what will be the incometax policy for him? He can just show UnEmployed and get exempt from tax? Will this impact his PR status & Citizenship ?

goldchoccycoin

But you wouldn't be unemloyed. You would pay tax on the income in the US and declare the income in Australia - you wouldn't be taxed twice though - so you would live in Aus and not pay tax. This would have no impact on PR or Citizenship.

Bermudashorts

If somebody is resident in Australia then they are obliged to pay tax on their worldwide income. Anything else is tax evasion. Not sure what Australia's penalties for such crimes are but fines and imprisonment are possible in some countries.

goldchoccycoin

As long as tax is paid in the US then I think it's ok as there is a tax treaty so you're not taxed twice. You'd have to declare the income and tax on an Australian tax return each year.

Bermudashorts

Tax treaties do not mean it is ok so long as you pay tax in one country or the other. It is not a matter of choice, it is down to what the treaty says.

goldchoccycoin

That's not what I said. If he's earning in the US he will probably pay tax there. I was simply pointing out that he won't pay here too. I never implied he could choose.

Sherlock Holmes

The OP should take note of this.

The only exemption from double jeopardy that I know of is pension income. There is some tax relief on dividends and savings but not sure about earned income. The ATO website gives good information.

http://www.ato.gov.au

Bermudashorts

And I am pointing out that it is not as simple as that. If he is resident in Australia, then he most definitely should be paying tax in Australia. US doesn't get first bite of the tax cherry.

goldchoccycoin

But if he's being paid in the US by a US company I imagine Uncle Sam will want his cut. Anyway, as long as he doesn't say he's 'unemployed' in Australia.