I am planning to run an online tutoring center in Melbourne and hire all my tutors from overseas and work remotely(they are all non-Australians or non-Australian tax residents). However, I have a few questions that I am not quite sure about:
1: Do I need to pay any tax on their wages?
2: Can I claim their wages as my business expenses?
3: Are there any additional taxes that I will need to pay for my tutors?
Hey @kim2010,
No, you won't have to pay taxes on their wages as this income is classed as foreign sourced income as they are foreign employees doing the work outside Australia.
The deductions you can claim depend on the type of business you operate. If you're operating a business or trust, then you can claim the salary and wages you pay to your employees.
We've answered a similar post on our forum, you can view our post here.
Hey @kim2010,
No, you won't have to pay taxes on their wages as this income is classed as foreign sourced income as they are foreign employees doing the work outside Australia.
The deductions you can claim depend on the type of business you operate. If you're operating a business or trust, then you can claim the salary and wages you pay to your employees.
We've answered a similar post on our forum, you can view our post here.
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