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ZaneDuncan(Newbie)Newbie
9 Nov 2023

I'm an Australian resident for tax purposes. I have recently completed an unpaid internship in South Korea and have been offered a full-time position. I want to take the job, however, I need to return home for two months. My work can be done remotely however I'm unsure what my options are in regards to tax.


I entered Korea on a holiday visa and plan to return there in January 2024 (two months) when my working visa gets accepted. My employee has a business entity in Singapore, Korea, and India but not in Australia. Since my wage will be lower than the Australian minimum wage, what is the best option to be paid for my work whilst ensuring I am meeting all legal requirements from both governments?


I have a canceled sole trader ABN number, but I was thinking I could renew/apply for a new one and be paid as a contractor. Would this be the best way to continue my work at the company or is there another option?


If this is the case, does any of the aforementioned countries that my company has entities in have a double tax break with Australia (AKA which country is best for my employer to pay me from)?


Lastly, I want to get a second job while I'm home just to help save a bit more before I return to Korea. How will this fit in with all this? Will I need to select one of these jobs to be my primary income/employment?


Any advice would be greatly appreciated. Thanks in advance!


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1 replies
297 views
1 replies

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Most helpful reply

AlliATO(Community Support)Community Support
10 Nov 2023

Hi @ZaneDuncan


Great news on the job offer. 😀


As an Australian resident for tax purposes and your tax reporting obligation you’ll need to report all foreign and worldwide income in your Australian tax return.


It will make no difference if your employer pay’s you in Australian currency or foreign currency. You’ll need to convert the foreign currency into Australian currency to include the income in your return.


This also applies to income earnt as contactor.


If you do pay tax on the foreign income in the country, you earn it you may be able to claim a foreign income tax offset. The purpose of the offset is to provide relief from paying double tax on that income.


You may wish to seek professional advice from a financial advisor or tax professional about which country you should be paid from, exchanges rates, how theses will affect the conversion to the Australian currency and what would be the more beneficial work type employee or contactor.


These types of questions fall under financial advice, we’re not able to provide this.


We have active tax treaties with all three countries.


Regarding a second job, the tax-free threshold for a primary job will only apply to any Australian employers you have, if you only have one even as a second job then you would be able to claim the threshold. If you don’t claim the threshold in the Australian job, it will still be considered when you lodge your tax return. 

All replies

Most helpful reply

AlliATO(Community Support)Community Support
10 Nov 2023

Hi @ZaneDuncan


Great news on the job offer. 😀


As an Australian resident for tax purposes and your tax reporting obligation you’ll need to report all foreign and worldwide income in your Australian tax return.


It will make no difference if your employer pay’s you in Australian currency or foreign currency. You’ll need to convert the foreign currency into Australian currency to include the income in your return.


This also applies to income earnt as contactor.


If you do pay tax on the foreign income in the country, you earn it you may be able to claim a foreign income tax offset. The purpose of the offset is to provide relief from paying double tax on that income.


You may wish to seek professional advice from a financial advisor or tax professional about which country you should be paid from, exchanges rates, how theses will affect the conversion to the Australian currency and what would be the more beneficial work type employee or contactor.


These types of questions fall under financial advice, we’re not able to provide this.


We have active tax treaties with all three countries.


Regarding a second job, the tax-free threshold for a primary job will only apply to any Australian employers you have, if you only have one even as a second job then you would be able to claim the threshold. If you don’t claim the threshold in the Australian job, it will still be considered when you lodge your tax return. 

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