My partner becomes a PR and liable to pay Australian tax. Her income is only from her overseas retirement. She has been donating to her charitable organisations where she comes from and intent to continue to do so. In her return, she has "foreign income" as the only source of income. As she has been donating to recognised charities in her country, how can she claims deduction in her return? Her income and donations are in foreign currency.
Hi @beano
I can see what you mean. Let's clear it up.
She'll only be able to claim the deduction for the foreign donations in her Australian tax return if it meets the Australian rules.
First being if the organisation she's donating to is on the Overseas Aid Gift Deduction Scheme (OAGDS) DGR register, we will recognise it.
Foreign charities are deductible if they appear on the
Overseas Aid Gift Deduction Scheme (OAGDS) DGR register.
Hi Bruce4Tax
This is what I gather from OAGDS based on Ministry of Foreign affairs
"The Overseas Aid Gift Deduction Scheme (OAGDS) enables approved Australian organisations to issue tax deductible receipts for donations made to support their overseas aid activities. This provides a way for members of the Australian community to donate to these organisations and be able to claim their donation as a tax deduction. The tax deductible funds can only be used to support activities in countries declared as a ‘developing country' by the Minister for Foreign Affairs. ‘Developing country’ status is reviewed every three years and the list of developing countries is found at http://dfat.gov.au/aid/who-wework-with/ngos/Pages/list-of-developing-countries.aspx Please note that throughout this document references to advice, guidance and general information on non-DFAT websites should not be considered as an endorsement of that
advice"
I think the point is missed. My partner has been paying tax and donating in her country before coming her. Since she joins me and become a PR, she has to pay Australian tax. Her income is foreign, her accountant is foreign and donation is also foreign. How can she claimed her foreign expenses for donations and accountant? Does it means ATO has no means for her to deduct her foreign income and foreign expenses in managing her tax? If she puts the name of the foreign charitable organisation and accountant, ATO will not recognise it.
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