Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
potonio(Initiate)Initiate
18 June 2023

Let me start with the word meaning, so it's clear.

  • Home Country: My country where I'm a citizen and currently do the tax return
  • Third Country: The country from where the payment is from
  • Fourth Country: The country where I receive the payment

I will be an international student in Australia starting from July 2023 onward. There will an income stream from Third Country which I work as a "Contractor". Specifically, I'm a Forex Trader who trades the firm's money and get paid a portion of the profit. The payment is then paid to the bank in Fourth Country.


My questions are:

  1. I'm considered a "Temporary resident", and a "Resident for tax purpose" in 2024 because I'll be an international student from 1 July 2023 - 30 June 2024. Thus, I will need to do tax return. Correct or not?
  2. According to this Foreign and temporary resident income, "you are taxed in Australia on some income you earn from employment or services you perform overseas while you are a temporary resident." Thus, my work as a contractor will be considered taxable in Australia. Correct or not?
  3. If Q2 is true, is it possible for me to structure the tax otherwise? for example, creating LLC in low corporate tax country and paying tax in that country to avoid individual tax in Australia. How to draw a line to distinguish between LLC and sole trader?
  4. The payment from Third to Fourth Country has any relevance for tax purpose in Australia? I want to highlight that the payment does not reach Australia.

451 views
1 replies
451 views
1 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
22 June 2023

Hi @potonio


You'll only need to do an Australian return if you earn Australian-sourced income. Only some foreign income is taxed not all. So you'd need to look at the income you earn and work out if you need to declare it.


You mentioned you're a contractor. A contractor here usually means you're running your own business. If you're running a business here your income from your business is taxable.


We can't give you advice about how to structure your business. A registered agent will be able to help you with that. The tax practitioners board has a search function to help you find one.


There's no consequence for the transfer of payments between the third and fourth countries as long as you declare the income if you need to.


You may also want to take a look at our article about what remote working means for your tax return.

All replies

Most helpful reply

AriATO(Community Support)Community Support
22 June 2023

Hi @potonio


You'll only need to do an Australian return if you earn Australian-sourced income. Only some foreign income is taxed not all. So you'd need to look at the income you earn and work out if you need to declare it.


You mentioned you're a contractor. A contractor here usually means you're running your own business. If you're running a business here your income from your business is taxable.


We can't give you advice about how to structure your business. A registered agent will be able to help you with that. The tax practitioners board has a search function to help you find one.


There's no consequence for the transfer of payments between the third and fourth countries as long as you declare the income if you need to.


You may also want to take a look at our article about what remote working means for your tax return.

Featured articles

Tax tips for managing your side hustle

22 Apr 2024 · 6 min read time

Tax on gifts and inheritances

15 Apr 2026 · 5 min read time

How much tax should I pay on a second job? Claiming the tax-free threshold

15 Apr 2026 · 4 min read time

Top liked users

  1. Bruce4Tax

    (Taxicorn)

    3248 likes

  2. Taxduck

    (Taxicorn)

    2049 likes

  3. PayrollDeanne

    (Taxicorn)

    812 likes

  4. YellowPotato

    (Taxicorn)

    519 likes

  5. knaresbro

    (Devotee)

    364 likes

Top contributors

  1. Bruce4Tax

    (Taxicorn)

    10382contributions

  2. Taxduck

    (Taxicorn)

    4737contributions

  3. PayrollDeanne

    (Taxicorn)

    2047contributions

  4. YellowPotato

    (Taxicorn)

    1336contributions

  5. YEP

    (Devotee)

    837contributions

Loading
Tax on International Student for Foreign Income | ATO Community