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_NewToThis2021ye(Newbie)Newbie
13 Apr 2021

Hello folks!Need some clarification on how I am taxed (or not taxed) as an employee of a company in Australia.

I am an Irish citizen and resident of Austria. I have received a job offer from a company based in Australia and the role will be "employee", not contractor or freelancer. I would be working as a customer support agent remotely.

As I understand, I will be subject to tax in only Austria, as Austria and Australia have a double tax agreement. However, the company is saying I need to file a tax return in Australia, get a TFN number and get tax credits against the 45% withholding tax in Australia?

This seems very convoluted and not in line with what I am reading online. It seems more clear-cut. I pay my tax and the social insurance of both myself and the company in Austria.

The company then declares my salary (Post-tax??) in Australia?Am I interpreting this correctly or would I be subject to tax in Australia as well?Cheers!

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5 replies
1,211 views
5 replies

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Most helpful replyATO Certified Response

TonyATO(Community Support)Community Support
ATO Certified Response15 Apr 2021

Hello @NewToThis2021ye

You will most likely need to apply for a TFN, but your Australian employer doesn't need to withhold tax from your salary or wages if both of the following apply:

    • You are a foreign resident for tax purposes

    • The employment services are performed overseas (outside Australia)

    Based on the information you've provided, its sound like you meet both of the above criteria, so no tax should be withheld.

    You can find information on our website about tax residency and how to apply for a TFN.

    Hope this helps :)

    Tony

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    Most helpful replyATO Certified Response

    TonyATO(Community Support)Community Support
    ATO Certified Response15 Apr 2021

    Hello @NewToThis2021ye

    You will most likely need to apply for a TFN, but your Australian employer doesn't need to withhold tax from your salary or wages if both of the following apply:

      • You are a foreign resident for tax purposes

      • The employment services are performed overseas (outside Australia)

      Based on the information you've provided, its sound like you meet both of the above criteria, so no tax should be withheld.

      You can find information on our website about tax residency and how to apply for a TFN.

      Hope this helps :)

      Tony

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