Tax Return PerthTax Return PerthIf you are a non-resident Australian, you do not pay tax in Australia for income earned in a foreign country, or from a foreign source.
For example, income earned from a foreign rental property overseas is not taxable in Australia.
Of course, any income earned from an Australian source is taxable in Australia; such as employment income.
Non-residents, however, are not subject to Australian tax on their foreign employment income.
And while Australian resident taxpayers are generally assessed on their foreign-sourced employment income, there are some specific exemptions.
Therefore, you should always check your residency status whenever lodging an Australian tax return.
And always remember that your residency requirements for tax purposes, may be very different to those for immigration purposes.
Tax Return Perth has many years’ experience in non-resident tax matters.
They are experts in ascertaining your residential status in Australia for tax purposes, as well as pinpointing any tax benefits you may have.
There is no tax-free threshold available to foreign residents, who generally pay a higher taxation rate than resident taxpayers.
Also, the 50 per cent discount available on capital gains to Australian residents may not be available to foreign residents.
In addition, there are certain types of payments made to non-residents that are subject to withholding tax and must be remitted by the payer to the ATO.
Withholding tax falls within the PAYG system and is typically reported on the client’s Business Activity Statement (BAS).
Withholding tax though is generally regarded as a ‘final’ tax, which means non-residents do not have to include that amount in their Australian tax return.
However, when the non-resident is from a country with a Double Tax Agreement with Australia, lower withholding tax rates may apply.
Also, when a foreign resident is a beneficiary or trustee of an Australian trust, the tax implications can be extremely complicated.
Therefore, it is recommended they seek advice from an experienced tax accountant such as Tax Return Perth to assist them.
Are you unsure of your residential status in Australia for a particular year, or do you need to pay tax in Australia on any income accrued outside the country?
Then the expert tax consultants at Tax Return Perth are the right people to consult.
We are experienced in non-resident taxation matters – and offer a free first consult to discuss your further assessment and tax options.