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Leannee(Newbie)Newbie
24 Feb 2023

Hi, If Company in Australia :

1.Outsource some of bookkeeping job in country B (For example)

2.The job will be perform in Country B by foreign worker from country B

3.This foreign worker never come to Australia and the job will be perform in Country B

3.Country B have DTA with Australia.

4.The company will treat this foreign worker as their employee, so he will need to sign the job agreement like other employee in Australia

5.Salary will be transfer to foreign worker bank account in country B


My question are: (Please confirm if this is correct)


1.The company in Australia will record this salary as normal salary in their BAS ?

2.No witholding tax to deduct as Australia and company B have DTA, so for example: if gross salary is $500 a month then the company will transfer exactly $500 to this foreign worker ?

3.The company have no obligation to pay superannuation ?

4.In this foreign worker payslip, there's only gross salary, no PAYG Income tax, no witholding tax and no superannuation paid ?

4.That foreign worker does not need to apply for TFN in Australia as he is a foreign resident for tax purpose ?

5.That foreign worker only need to report and pay tax in his country (country A) ?








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1,293 views
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JodieR_ATO(Community Support)Community Support
27 Feb 2023

Hi @Leannee,


We've answered quite a few posts on this. If an Australian employer has an overseas employee, that's living overseas as a foreign resident, and performing the work overseas, the income will be deemed foreign-sourced. This means you don't have an obligation for PAYG withholding for this employee, nor do you have an obligation to pay their super here.


However, both you and the employee may have reporting obligations and will need to check with the relevant taxing authority in the country where the work is being performed. You can also check the tax treaty on which country has taxing rights over the income from here.


We've also answered a similar post on our forum from the employer's perspective, you can view our response from here.

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Most helpful reply

JodieR_ATO(Community Support)Community Support
27 Feb 2023

Hi @Leannee,


We've answered quite a few posts on this. If an Australian employer has an overseas employee, that's living overseas as a foreign resident, and performing the work overseas, the income will be deemed foreign-sourced. This means you don't have an obligation for PAYG withholding for this employee, nor do you have an obligation to pay their super here.


However, both you and the employee may have reporting obligations and will need to check with the relevant taxing authority in the country where the work is being performed. You can also check the tax treaty on which country has taxing rights over the income from here.


We've also answered a similar post on our forum from the employer's perspective, you can view our response from here.

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