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kimimiki(I'm new)I'm new
26 Feb 2024

Hi Team, would like ask regarding an overseas employee permanently residing in Spain and is currently working remotely for an Australian company. The employee has expressed a request to stop withholding Payg tax as well as deduction of compulsory superannuation contributions as this is considered a double taxation on her part and will start paying the super equivalent in Spain. We are currently doing the payroll on Xero.

We would like to seek your guidance on how to proceed in this matter. How do we navigate this and what are the necessary steps that need to be taken for this kind of situation? Appreciate your prompt attention to this matter.

Thank you for your assistance.

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169 views
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PayrollDeanne(Taxicorn)Taxicorn
ATO Certified Response26 Feb 2024

Hiya @kimimiki 👋


The ATO has great guidance on this topic for PAYG Withholding and Superannuation Guarantee (this super guidance doesn't really apply, as per the ATO Community article about foreign tax resident working in foreign country).


Deanne

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Does the employer not liable to withhold tax and deduct super for overseas employee? | ATO Community