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Ayham.F(Newbie)Newbie
14 June 2026

Hello,


I'm an Australian citizen, 45 years old, and was employed full-time in Australia. My annual salary was $150,000 AUD, with payments directly deposited by my employer into my Australian bank account, alongside superannuation and I also have Medicare.

I left Australia permanently on 28/08/2023 and keep working remotely from UAE . I was working continuously from UAE to the same Australian company and receiving my salary on my Australia bank .

I quit from my job on 01/04/2025 with no single visit or entry to Australia since I moved to UAE.

(the total duration of my service was about a year and a half).


Please note that this was my only income in Australia, and I have no ties or connections there, such as property, business, or family members.


Am I eligible to claim back the TAX that my employer paid as a foreign resident for tax purposes?


Thanks.

73 views
3 replies
73 views
3 replies

All replies

RachelATO(Community Moderator)Community Moderator
15 June 2026

Hi @Ayham.F,


Yes, you can claim a refund of the tax that was withheld if you were a foreign resident. Your eligibility is based on your tax residency status at that time.


When you left Australia permanently, it's likely you became a foreign resident for tax purposes from that date. As a foreign resident your income would be considered foreign-sourced rather than Australian-sourced.


To claim a refund, you'll need to:

  • lodge a final tax return for the 2023–24 income year
  • include all your employment income and tax withheld amounts in your return
  • declare your change in residency status.

When you lodge your tax return, we'll:

  • assess your residency status for tax purposes
  • calculate the correct tax on your income, and
  • work out if you've had too much tax withheld.

If you're assessed as a foreign resident and the income is not assessable to you, you'll receive a refund when your tax return is processed.

Ayham.F(Newbie)Newbie
22 June 2026

Thanks for your reply, Rachel.

I've spoken with a few other tax agents who advised I'm not eligible, though I didn't fully grasp their reasoning.

They explained that during my service, I was considered an Australian resident while working overseas. Otherwise, they said I would have been on a "Third Party subcontractor" contract, which would have allowed me to claim tax the company paid on my behalf.


They also mentioned something about a "Private Ruling," suggesting that pursuing this path could lead to me owing more tax than my employer has already paid.


What are your thoughts on this?


Thanks.

RachelATO(Community Moderator)Community Moderator
22 June 2026

Hi @Ayham.F,


Your eligibility for the foreign income tax offset (FITO) depends entirely on:

  • your tax residency status for each income year
  • the nature of your employment contract
  • who paid the tax and in which country
  • whether the income was included in your Australian tax return, and
  • whether any exemptions or special rules applied.

You need to consider all these facts together to work out the correct tax treatment.


From what you've been told, it sounds like the other tax agents may be considering whether your foreign employment income could be treated as exempt income under Australian tax law. If you were an Australian resident for tax purposes while working overseas and your foreign employment income qualifies as exempt, a FITO wouldn't be available.


If your income qualifies as exempt foreign employment income, you must declare it in your tax return as 'Exempt income' rather than 'Employment income'. You can't claim a FITO on exempt income because that money isn't subject to Australian tax in the first place.


The reference to a 'Third Party subcontractor' contract relates to the legal structure of your employment arrangement. This can affect how your income is characterised, who bears the tax liability, and whether any foreign tax credits or offsets may be available.


Regarding the private ruling, this is an option where the tax treatment is complex or uncertain. Given the competing views you've received, a private ruling would give you certainty about how tax law applies to you, before you lodge.

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Can Foreign Residents claim a refund for the taxes I have paid? | ATO Community