Contact UsAustralian citizen lived and worked in the USA for 10 years. Company bought out his contract and therefore working visa expired. Australian citizen now working in Europe and paying tax rate of that country. Does he need to declare this foreign income to either Australia or the USA?
Fred Rollo
Q1: Confirm you are not married to US citizen previously filing joint return
Q2: What is European country of residence & tax status there?
Q3: What is period of contract for European employment?
Q4: Still maintain residence in Australia?
Q5: What is nature of accommodation in Europe?
Q6: Any children - if so, where living and schooling arrangements?
Q7: Any plans to return to Australia in next two years - permanently?
Reply
569 weeks ago
Q2: What is European country of residence & tax status there?
Q3: What is period of contract for European employment?
Q4: Still maintain residence in Australia?
Q5: What is nature of accommodation in Europe?
Q6: Any children - if so, where living and schooling arrangements?
Q7: Any plans to return to Australia in next two years - permanently?
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Tax Professional Answers
Matthew Tol
Residency for tax purposes in Australia is different to residency as far as your passport is concerned.
If you are living overseas and spend less than 183 days per year in Australia, then it is more than likely you will be a non resident for taxation purposes in Australia. This means that you would only be taxed on your Australian sourced income and your other worldwide income would not be assessed in Australia.
You need to consider whether there is a double tax treaty between Australia and your current country of residence as this can impact on your taxation liabilities in both countries.
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569 weeks ago
If you are living overseas and spend less than 183 days per year in Australia, then it is more than likely you will be a non resident for taxation purposes in Australia. This means that you would only be taxed on your Australian sourced income and your other worldwide income would not be assessed in Australia.
You need to consider whether there is a double tax treaty between Australia and your current country of residence as this can impact on your taxation liabilities in both countries.
Steve Douglas
Under Australian tax laws, citizens are not taxed on their international incomes when they are genuinely living aborad and considered "Non-Resident". As such this income would not be taxable in Australia.
The rules on non-residency are very clear, they require a genuine domicile to be held in the country of residence and of course elgal permission to live their (appropriate migraiton visa).
It does not matter how long you are in or out of Australia, you can in fact be in Australia more than 183 days, as long as you are just "visiting" or on "holiday". If it is seen that you have a genuine "home" in Australia, then you will be treated as a resident for tax purposes and worldwide income would be taxed in Australia with a full tax credit for any tax paid on that income in other countries.
As such, if you confirm that you are "living" in Europe, then this income would not need to be declared in Australia.
Leave a Comment
569 weeks ago
The rules on non-residency are very clear, they require a genuine domicile to be held in the country of residence and of course elgal permission to live their (appropriate migraiton visa).
It does not matter how long you are in or out of Australia, you can in fact be in Australia more than 183 days, as long as you are just "visiting" or on "holiday". If it is seen that you have a genuine "home" in Australia, then you will be treated as a resident for tax purposes and worldwide income would be taxed in Australia with a full tax credit for any tax paid on that income in other countries.
As such, if you confirm that you are "living" in Europe, then this income would not need to be declared in Australia.