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Bob987(Newbie)Newbie
23 June 2023

I want to seek for some advise on tax reporting between Japan and Australia.


My friend is a AU citizen and never work in AU before and she is also a citizen in Japan. My friend went back to Japan two years ago and now she is working in Japan as an employee. She would like to stay in Japan for at least few years time but she do not want to pay tax in Japan. Her company in Japan allow her not to pay tax in Japan and send the wages to her bank account in AU. And her company ask my sister for ABN. After she received her wages in AU, she can do the tax return in AU every FY.


My friend is a bit unsure whether is it allow to do so, can she open ABN to report for her foreign income earned in Japan. She think it is a best way to do it since she do not want to pay tax in Japan. 


If it is allow to do so, can you help my friend to manage her tax return in the future? 


She think if she can contribute all her income into the super account paying 15% tax from her income, she can save it and get it in few years time. She is now 57 years-old.


Thanks a lot!


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AriATO(Community Support)Community Support
27 June 2023

hey @Bob587


If your friend is a tax resident of Australia they'll declare their worldwide income here. If they want to work as a contractor they'll need to check if they're allowed an ABN. It's not granted to everyone. Have a look at the Australian business register for more details.


Your friend should check with the relevant tax department in Japan and also the tax treaty between Australia and Japan to make sure they're doing everything right. If your friend wants advice about tax and what they should do in their situation, they'd need to get help from a tax professional. The Tax practitioners board has a register you can search.

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Most helpful reply

AriATO(Community Support)Community Support
27 June 2023

hey @Bob587


If your friend is a tax resident of Australia they'll declare their worldwide income here. If they want to work as a contractor they'll need to check if they're allowed an ABN. It's not granted to everyone. Have a look at the Australian business register for more details.


Your friend should check with the relevant tax department in Japan and also the tax treaty between Australia and Japan to make sure they're doing everything right. If your friend wants advice about tax and what they should do in their situation, they'd need to get help from a tax professional. The Tax practitioners board has a register you can search.

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Tax treatment between Japan and Australia | ATO Community