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TAX on Interest earned from Fixed Deposits?

TAX on Interest earned from Fixed Deposits?

Old Mar 12th 2007, 4:04 pm
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Default TAX on Interest earned from Fixed Deposits?

I have been reading this forum regularly... and will require some advices from you folks.

May I know the % or amount which we will taxed for any interest made via fixed deposits.

Many thanks.
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Old Mar 12th 2007, 9:05 pm
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by daylesford View Post
I have been reading this forum regularly... and will require some advices from you folks.

May I know the % or amount which we will taxed for any interest made via fixed deposits.

Many thanks.
Here's what has happened to us...

When we first invested our capital we were still in the UK with an address with the bank outside Australia... That had us taxed at 10%... Then we changed our address to one inside Australia when we moved and we were taxed at 46.5%... Then we provided Tax File Numbers and were credited all the tax back because we now have to account for everything on our tax return... It is possible to have 2 addresses, one in the UK (so maintaining the 10% rate) and one in Australia for statements, cards, etc...

Getting a TFN is not hard and can be done on-line once you have a visa and address in Australia...

Further info here...

Australian Tax Office

HTH
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Old Mar 13th 2007, 3:18 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by rodders39 View Post
Here's what has happened to us...

When we first invested our capital we were still in the UK with an address with the bank outside Australia... That had us taxed at 10%...
UK tax payable would normally be additional, if you were UK tax resident.
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Old Mar 13th 2007, 4:03 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by JAJ View Post
UK tax payable would normally be additional, if you were UK tax resident.
There's just no hiding... Everyone wants their slice...
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Old Mar 13th 2007, 4:13 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by rodders39 View Post
There's just no hiding... Everyone wants their slice...
You don't pay double tax. The 10% withheld by Australia is allowable against your UK tax liability.

Or are you objecting to the principle of paying tax in the first place?
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Old Mar 13th 2007, 5:56 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by JAJ View Post
You don't pay double tax. The 10% withheld by Australia is allowable against your UK tax liability.
I know... I guess I should have been clearer...

Or are you objecting to the principle of paying tax in the first place?
Absolutely...! Slightly tongue in cheek of course...
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Old Mar 13th 2007, 8:24 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Agreed ... did you (rodders39) receive any interest from Australia when you were living in the UK?

Have you declared it to the UK Revenue?

Best regards.




Originally Posted by JAJ View Post
UK tax payable would normally be additional, if you were UK tax resident.
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Old Mar 13th 2007, 10:20 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Any idea what the Oz tax situation is with money invested in NZ? the interest rates are looking pretty good at the moment and we were thinking of leaving the money here for a while

Last edited by Nerine; Mar 13th 2007 at 10:23 am.
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Old Mar 13th 2007, 11:42 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by Alan Collett View Post
Agreed ... did you (rodders39) receive any interest from Australia when you were living in the UK?

Have you declared it to the UK Revenue?

Best regards.
For one month I think but we were still resident for Tax purposes in the UK for longer I believe... We came over here in July last year on a Tourist visa and applied for a 164 while we were here which we evidenced in Auckland returning to Australia on 16th December...

My UK Tax return is not due yet...! Though I shall certainly inform my accountant of the details... I need to sort out the transfer of our 2 very modest pensions as well whilst I remember... Something your firm might be able to help with...?
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Old Mar 13th 2007, 2:11 pm
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by Nerine View Post
Any idea what the Oz tax situation is with money invested in NZ? the interest rates are looking pretty good at the moment and we were thinking of leaving the money here for a while
It might depend on whether you are an Australian citizen/permanent resident or temporary resident.

Peter
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Old Mar 14th 2007, 12:38 am
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Default Re: TAX on Interest earned from Fixed Deposits?

Originally Posted by Nerine View Post
Any idea what the Oz tax situation is with money invested in NZ? the interest rates are looking pretty good at the moment and we were thinking of leaving the money here for a while
It's not very smart to just look at interest rates without considering currency risk. If the interest rates in NZ are higher than Australia, then it's a signal there's a risk that the NZ dollar will fall in value against the Australian dollar.

Incidentally, you should be able to obtain a New Zealand dollar denominated bank account in Australia if you really want one.

And as regards the tax issue, ptlabs has answered that.
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