Tax on foreign income
#1
Just Joined
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Joined: Aug 2014
Posts: 10
Tax on foreign income
Hi,
I have an Australian residency since 2 years. I already got Tax Number during my first entry. I have the following questions.
- Do I have to pay taxes to Australian government on the income I earn in Middle East? I have only done the first entry, still I haven't gone to Australia for settlement.
- If I transfer all my money from Middile East to Australian bank, will I have to pay them taxes or duties over that transfer? What will be the complications?
Thanks for help.
I have an Australian residency since 2 years. I already got Tax Number during my first entry. I have the following questions.
- Do I have to pay taxes to Australian government on the income I earn in Middle East? I have only done the first entry, still I haven't gone to Australia for settlement.
- If I transfer all my money from Middile East to Australian bank, will I have to pay them taxes or duties over that transfer? What will be the complications?
Thanks for help.
#2
Re: Tax on foreign income
You should not have applied for a tax file number on your initial entry, that was a mistake because it now might lead the tax office to expect a tax return.
Having a permanent resident visa does not make you tax resident, they are two different things. You should not have to do a tax return, however because you applied for a TFN, you might get chased up for one..
Having a permanent resident visa does not make you tax resident, they are two different things. You should not have to do a tax return, however because you applied for a TFN, you might get chased up for one..
#3
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Joined: Aug 2014
Posts: 10
Re: Tax on foreign income
That's scary, can you advise what should I do now?
#5
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Joined: Aug 2014
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Re: Tax on foreign income
Can you pls advise what can I do in this situation? Its already 2 years since I came back from first entry. Now, I have decided to move to Australia .... Please tell as I have to apply visa for my wife as well.
#7
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Joined: Aug 2014
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Re: Tax on foreign income
Thankfully, I consulted an accountant & digged internet myself, following are my findings. I'm not an Australian Resident for Tax Purposes. As a result, no taxes apply.
Australian Resident for Tax purposes is based on the period one spend in Australia (6 months or more). It doesn't depend on whether you have been issued a TFN or a MedCare Card.
Taken from ATO website:
Generally, you will be an Australian resident for tax purposes if any of the following apply: you have always lived in Australia or you have come to Australia and live here permanently; you are an Australian travelling overseas temporarily and do not set up a permanent home in another country; you are an overseas student who has come to Australia to study and are enrolled in a course that is more than six months long; you have been in Australia continuously for six months or more, and for most of that time you worked in the one job and lived at the same place; or you have been in Australia for more than half of the financial year, unless your usual home is overseas and you do not intend to live in Australia.
Australian Resident for Tax purposes is based on the period one spend in Australia (6 months or more). It doesn't depend on whether you have been issued a TFN or a MedCare Card.
Taken from ATO website:
Generally, you will be an Australian resident for tax purposes if any of the following apply: you have always lived in Australia or you have come to Australia and live here permanently; you are an Australian travelling overseas temporarily and do not set up a permanent home in another country; you are an overseas student who has come to Australia to study and are enrolled in a course that is more than six months long; you have been in Australia continuously for six months or more, and for most of that time you worked in the one job and lived at the same place; or you have been in Australia for more than half of the financial year, unless your usual home is overseas and you do not intend to live in Australia.
#8
Re: Tax on foreign income
You should not have applied for a tax file number on your initial entry, that was a mistake because it now might lead the tax office to expect a tax return.
Having a permanent resident visa does not make you tax resident, they are two different things. You should not have to do a tax return, however because you applied for a TFN, you might get chased up for one..
Having a permanent resident visa does not make you tax resident, they are two different things. You should not have to do a tax return, however because you applied for a TFN, you might get chased up for one..
As the OP wanted to open an Australian bank account, he would need a TFN. If you don't have a TFN, ABN or TFN exemption registered against your account, or have an overseas residential address, you are, by law, charged withholding tax. https://www.commbank.com.au/support/faqs/598.html
As far as I can see, until taking up full residency for tax purposes, the only tax payable would be for is on the interest earned in the account/s, which until it exceeds the total income threshold, would be refundable.
Last edited by The Bloke; Dec 6th 2014 at 10:53 am.
#9
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Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
Re: Tax on foreign income
Why would it be a mistake for the OP to get a TFN?
As the OP wanted to open an Australian bank account, he would need a TFN. If you don't have a TFN, ABN or TFN exemption registered against your account, or have an overseas residential address, you are, by law, charged withholding tax. https://www.commbank.com.au/support/faqs/598.html
As far as I can see, until taking up full residency for tax purposes, the only tax payable would be for is on the interest earned in the account/s, which until it exceeds the total income threshold, would be refundable.
As the OP wanted to open an Australian bank account, he would need a TFN. If you don't have a TFN, ABN or TFN exemption registered against your account, or have an overseas residential address, you are, by law, charged withholding tax. https://www.commbank.com.au/support/faqs/598.html
As far as I can see, until taking up full residency for tax purposes, the only tax payable would be for is on the interest earned in the account/s, which until it exceeds the total income threshold, would be refundable.
#10
Home and Happy
Joined: Dec 2002
Location: Keep true friends and puppets close, trust no-one else...
Posts: 93,806
Re: Tax on foreign income
A) take note of the replies you got
B) learn some patience. You were posting in the early hours of the morning Aus time. You only needed to post once and you would have got answers when people woke up.
B) learn some patience. You were posting in the early hours of the morning Aus time. You only needed to post once and you would have got answers when people woke up.
#11
Re: Tax on foreign income
Why would it be a mistake for the OP to get a TFN?
As the OP wanted to open an Australian bank account, he would need a TFN. If you don't have a TFN, ABN or TFN exemption registered against your account, or have an overseas residential address, you are, by law, charged withholding tax. https://www.commbank.com.au/support/faqs/598.html
As far as I can see, until taking up full residency for tax purposes, the only tax payable would be for is on the interest earned in the account/s, which until it exceeds the total income threshold, would be refundable.
As the OP wanted to open an Australian bank account, he would need a TFN. If you don't have a TFN, ABN or TFN exemption registered against your account, or have an overseas residential address, you are, by law, charged withholding tax. https://www.commbank.com.au/support/faqs/598.html
As far as I can see, until taking up full residency for tax purposes, the only tax payable would be for is on the interest earned in the account/s, which until it exceeds the total income threshold, would be refundable.
Last edited by Bermudashorts; Dec 6th 2014 at 6:12 pm.
#12
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Re: Tax on foreign income
https://www.ato.gov.au/Forms/Non-lod...dvice-2013-14/
Liaise with the accountant with whom you have spoken about submitting a Non Lodgment Advice for the Aus tax years when you have not (yet) submitted a tax return.
Best regards.
Liaise with the accountant with whom you have spoken about submitting a Non Lodgment Advice for the Aus tax years when you have not (yet) submitted a tax return.
Best regards.
#13
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Joined: Aug 2014
Posts: 10
Re: Tax on foreign income
Thanks for the guidance.
I lodged the taxes for 2 years and ATO has sent a confirmation after 2 weeks. Now I am up-to-date on ATO records.
For the new arrivals, please don't apply for tax number if you wish to settle later after some years. If you apply, then you have to lodge a tax application. You will be Non-Resident for tax purposes in this case and will have no tax. However, you still have to update the ATO records.
Thanks again to all of the experienced forum members.
I lodged the taxes for 2 years and ATO has sent a confirmation after 2 weeks. Now I am up-to-date on ATO records.
For the new arrivals, please don't apply for tax number if you wish to settle later after some years. If you apply, then you have to lodge a tax application. You will be Non-Resident for tax purposes in this case and will have no tax. However, you still have to update the ATO records.
Thanks again to all of the experienced forum members.
#14
Forum Regular
Joined: Aug 2011
Posts: 75
Re: Tax on foreign income
Thanks for the guidance.
I lodged the taxes for 2 years and ATO has sent a confirmation after 2 weeks. Now I am up-to-date on ATO records.
For the new arrivals, please don't apply for tax number if you wish to settle later after some years. If you apply, then you have to lodge a tax application. You will be Non-Resident for tax purposes in this case and will have no tax. However, you still have to update the ATO records.
Thanks again to all of the experienced forum members.
I lodged the taxes for 2 years and ATO has sent a confirmation after 2 weeks. Now I am up-to-date on ATO records.
For the new arrivals, please don't apply for tax number if you wish to settle later after some years. If you apply, then you have to lodge a tax application. You will be Non-Resident for tax purposes in this case and will have no tax. However, you still have to update the ATO records.
Thanks again to all of the experienced forum members.
Will you be taxed on the amount you bring in to Australia?
Also, if a resident is residing in Australia and has accounts overseas wherein he gets interest from deposits- will that be taxed? What is the percentage of taxation?
#15
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Joined: Oct 2006
Location: Nowhere - I'm a travelling (wo)man!
Posts: 2,362
Re: Tax on foreign income
No
Yes if on a permanent visa. Rate depends on your other income and whether any tax has already been deducted at source/paid in the other country.
Also, if a resident is residing in Australia and has accounts overseas wherein he gets interest from deposits- will that be taxed? What is the percentage of taxation?