The employer is a Chinese company and the employee is working in Australia, is this foreign income?

 Author: BlakeATO(Community Support)Community Support

ATO Certified Response4 Mar 2021

Hi @sharkdeng,

The source of your employer doesn't change your residency for tax purposes.We generally look at your intentions and behaviours. No one factor is determining, though, so you need to look at all of them.

Usually, if you reside in Australia and your permanent domicile is in Australia, you'll be considered an Australian resident for tax purposes.

If your employer isn't an Australian employer, like the one you've mentioned, it will be regarded as foreign employment income.

If you determine you're a resident for tax purposes, you'll need to report that income in your tax return. If you determine you're a foreign resident for tax purposes, you only need to declare Australian-sourced income in your return (so not this employment income you've mentioned).

If you're working within Australia for your foreign employer, you will generally be entitled to super guarantee, and they should pay you as such.

Whether or not you need to report the income to us depends on each of the above factors, as well as the other sources of income you may have, so it's best to use our tool on our website to help work out if you need to lodge a tax return at all first.

You can work out your tax residency, work out if you need to lodge a return, and find out more about foreign and worldwide income and foreign employment income and super on our website.