Hello everyone,
I have some tax-related questions specific to my situation, and I'm hoping someone here can provide some guidance.
I am a German resident currently in Australia on a Working Holiday Visa, which is valid for 12 months. To make the most of my time here, I founded a Sole Trader Business, and now I am in the process of securing a contract with a client who will pay me in 20 installment rates. The project is estimated to take around 5 months to complete. However, there's a catch - my Visa is set to expire in 6 months, which means I will need to close my Sole Trader business once my Visa expires.
I consulted my German tax consultant, who mentioned that there might be a similar law in Australia as in Germany. According to him, after I close my business, I may have to provide a balance sheet to the government, declaring that there are 14 outstanding installment rates.
Here are my main concerns:
- Given that I am a German resident on a Working Holiday Visa and have founded a Sole Trader Business for my 12-month visa, is this the correct procedure? Will I indeed need to report and pay taxes on the outstanding installments after closing my business?
- What is the timeline for tax payment after closing the business? Do I need to pay the taxes immediately or within a specific period?
- As a German resident on a Working Holiday Visa, could someone please provide information on the income tax rates applicable to my situation? I found the "Working holiday maker tax rates 2023–24" on the ATO website (https://www.ato.gov.au/Rates/Individual-income-tax-rates/). Are these the normal income tax rates that will apply to my case - specifically for the outstanding installment rates?
Thank you all for your time and assistance.
Kind Regards
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