Do I deduct AUS PAYG from a NZ based employee?

Question

 · Accepted Answer

JodieR_ATO · Answer

If you're an Australian employer and you employee a foreign resident completing work for you overseas, you don't have to withhold tax for them, or pay their super here. Your employee and yourself may have obligations in the country where your employee resides. Foreign residents are generally only assessed on Australian sourced income (accordingly, the employment income of foreign residents derived from work performed overseas will be exempt from Australian tax). You can refer to Section 6-5 ITAA 1997.

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