Hi,
I am Aus and Italian citizen. Now living and resident in Italy but I have a term deposit in Aus and declare some interest.
Just to clarify why need to pay tax twice (10% (as non resident in Aus) + 26 % (as italian worker resident). So at the end it is 36%!! is it correct all of this? it look to muh to me
Hi @santaluk,
It is correct that you'll be taxed by the bank in Australia. They have a requirement to withhold from interest you earn.
In regard to paying tax on it in Italy as well you'll need to speak with the tax authority there. You'll need to ask them what you need to do to avoid double taxation as there's a tax treaty between us and Italy.
Under the Australia Italy double tax treaty, the Italian tax authorities are obliged to give you a credit for the Aus tax paid against the Italian tax payable. In your example you still pay tax of 26% on the interest income but 10% goes to the Aus tax authority and 16% goes to the Italian tax authority.
Thanks a lot Rob for your reply, finally a clarification.
Unfortunately it looks that's never happened until now (since i have changed my residence)..... because first Commbank charge me directly 10% on maturity date and after when is tax return time in Italy (now for example) they charge me 26% on top!! that's not good and this is happen since 2019-20...could you tell me please why and what's wrong? Someone need to return my money back. What I have to do please, what documents I need to provide and at whom to not waste my money as son as possible? thanks
Hi @santaluk,
It is correct that you'll be taxed by the bank in Australia. They have a requirement to withhold from interest you earn.
In regard to paying tax on it in Italy as well you'll need to speak with the tax authority there. You'll need to ask them what you need to do to avoid double taxation as there's a tax treaty between us and Italy.
I've just send a Tax Residence Certificate to Commbank as part of treaty Ita-Aus. I hope no pay anymore Commbank, also refund of the past years as my tax residence is only in Italy not in Australia since 2020. How to send/email this Certificate document at ATO as well?
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