Moving overseas permanently during the tax year

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 · Accepted Answer

RachATO · Answer

Sorry for the long-ish reply, but hopefully this covers all points of your enquiry. I am thinking that, at the time I started working from overseas, I should have submitted a Tax File Number Declaration form and mentioned that I am a foreign resident. Is that correct? Yes, that's correct. If your tax residency changes, a Withholding declaration form should be provided to the employer to officially notify them you've ceased being an Australian tax resident. The link will take you to more information as well as the PDF form download. The company already has my TFN so they didn't ask me to submit it again. A new form isn't necessary if your employment conditions change (for example, changing from a full-time or part-time employee to a casual contract). I have not yet notified the ATO that I am a foreign resident. There are a few tax obligations for people leaving Australia. For example, if you have a Government education or trade support loan (such as a HELP loan), you should update your ATO online contact details and submit an Overseas travel notification within 7 days of leaving Australia. A question at the beginning of the Australian income tax return also asks about your Australian tax residency status, so you can provide notification to us there too. Depending on your circumstances, you may also be entitled to lodge a tax return early. So please take a look at our webpage Lodge your tax return before leaving Australia. Tax is still being deducted from my salary the same as at the resident rate even nowÃ¢â‚¬Â¦. My plan is to submit the Tax File Number Declaration form and mention I have been a foreign resident since March (can I do that?) and ask if the tax I have paid will be returned (adjusted) in this year's tax return?Or will the company refund me the tax they wirhheld for the last 3 months?Or should I do the foreign tax offset when I do the tax return here? By providing the employer with a withholding declaration form and notifying them of your change in tax residency, they will be able to adjust the withholding rate appropriately. You can provide them with this form now, however changes to the tax rate can't be backdated, so it would only take effect from your next payment after submitting the form to them. When you lodge your Australian tax return we can then determine if too much tax has been withheld for the financial year, and if this is the case you may receive a tax credit. Additionally, if a Tax treaty exists between Australia and your new country of residence, then several basic principles might apply to prevent your income being taxed twice. For example, if your Australian employer (the jurisdiction of source) applies tax to your income, then the country you're living in (the jurisdiction of residence) may apply tax relief against their own tax laws from also being imposed on the same income. I'd recommend that you check out the details in the link, so you can find the relevant treaty agreement for your current residence. I'd also suggest to contact the relevant tax agency in your country to find out about your reporting obligations to them given these circumstances. Hopefully this is helpful and please let us know how you go. RachATO

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