Understand for residents no tax is payable for pension payments from age 60 and Investment earnings are tax-free.
As an Australian citizen over age 60 but a non-resident for tax purposes, do I enjoy these same benefits when opening/starting an account-based pension?
The question you're asking has a few layers.
Australia does not tax account-based pensions when paid to someone aged over 60. Tax residency and physical location does not alter this outcome.
Whilst Australia does not tax it, that does not prevent it from being classified as reportable 'taxable income' in the country you are a tax resident of. Meaning, an Australian account-based pension could make a $10,000 annual payment to you without withholding tax however the country you are a tax resident of may classify this as 'income' which you must report in your tax return. In that case, you'd pay tax on the $10,000 pension payment depending on your country of tax residence.
You should look into the tax rules applied based on your country of tax residence. Does it tax foreign pensions? If so, is there a double tax treaty in place to avoid this double taxation?
The question you're asking has a few layers.
Australia does not tax account-based pensions when paid to someone aged over 60. Tax residency and physical location does not alter this outcome.
Whilst Australia does not tax it, that does not prevent it from being classified as reportable 'taxable income' in the country you are a tax resident of. Meaning, an Australian account-based pension could make a $10,000 annual payment to you without withholding tax however the country you are a tax resident of may classify this as 'income' which you must report in your tax return. In that case, you'd pay tax on the $10,000 pension payment depending on your country of tax residence.
You should look into the tax rules applied based on your country of tax residence. Does it tax foreign pensions? If so, is there a double tax treaty in place to avoid this double taxation?
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