hi, i am an Australian citizen wanting to hire someone as a virtual assistant from the philippines directly to help with my business
As i will not hire her through an agency, so i want to know the implications and tax laws if i would pursue with my decision.
thank you
Hi @Alex11112222,
You are not required to withhold on salary or wage payments to foreign residents for work done overseas.
This is the case regardless of the residency status of the payer, which is yourself. It will count as "foreign-sourced income" for that employee. Foreign residents only pay tax on their Australian-sourced income.
You also don't have to pay super for a non-resident employee who works entirely outside Australia.
Regarding your obligation for them in their country, you'd need to check with the taxation or revenue department of Philippines and confirm their employment laws.
Hi @Alex11112222,
You are not required to withhold on salary or wage payments to foreign residents for work done overseas.
This is the case regardless of the residency status of the payer, which is yourself. It will count as "foreign-sourced income" for that employee. Foreign residents only pay tax on their Australian-sourced income.
You also don't have to pay super for a non-resident employee who works entirely outside Australia.
Regarding your obligation for them in their country, you'd need to check with the taxation or revenue department of Philippines and confirm their employment laws.
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