Hello,
We have a client who is a temporary resident and Australian resident for tax purposes. They are working remotely in Australia for their overseas employer. According to ATO website here and here, they do not need to report this employment income despite being Australian resident for tax purposes - is this correct? Is there any other factors to consider?
Hi @Tired.
While they're not taxed on their foreign income, as an Australian resident for tax purposes they'll still need to report it to us in their tax return.
When they do this they can claim a foreign income tax offset so they don't end up paying tax in 2 countries.
We've got some info about this in our article What remote working means for your tax return, under the heading 'I work remotely in Australia for a foreign employer - how am I taxed?'
Hi @Tired.
While they're not taxed on their foreign income, as an Australian resident for tax purposes they'll still need to report it to us in their tax return.
When they do this they can claim a foreign income tax offset so they don't end up paying tax in 2 countries.
We've got some info about this in our article What remote working means for your tax return, under the heading 'I work remotely in Australia for a foreign employer - how am I taxed?'
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