Loading
This thread is archived and the information may not be up-to-date. You can't reply to this thread.
sadsaj(Initiate)Initiate
7 Jan 2025

Hi

I provide IT consulting services through my pty ltd company and I have only one client, who is in Saudi Arabia. I send him monthly invoices for the fixed amount as per the contract and he pays me after deducting withholding tax. Amount that I get after tax deduction matches with what we agreed in the contract. I am filing taxes for my company for the first time this year and need to know following

  1. Since I am a resident company, I should report income under 6C?
  2. Do I also need to report this same income in 8 G and 8 R?
  3. Foreign income that I am reporting should include withholding tax or it should be the amount that I get in my company's bank account after all deduction.

Thanks for the help

176 views
3 replies
176 views
3 replies

Most helpful response

Most helpful reply

MPrivate(Superuser)Superuser
7 Jan 2025

Thank you,

this company return may be more complex than it seems to be self-prepared, it is highly recommended that you seek advice from a reputable firm with experience in SA.

From my understanding, income will likely need to be declared including any tax withheld. However, since there is currently no tax treaty between Australia and SA, this could mean that any tax withheld in SA may not be eligible for a deduction or tax offset in Australia.

On a separate note, if you are the only person working in your company, PSI rules and/or General Anti-Avoidance rules will most likely apply to this income.

All replies

MPrivate(Superuser)Superuser
7 Jan 2025

Hi sadsaj,

need a little more info.

Why is Saudi Arabia client withholding tax from the payments?

Is the contract actually between your company and the client or between you individually and the client, but the payments go into a company account?


Featured articles

When you need to register for GST

15 Apr 2026 · 4 min read time

Answers to your PAYG instalment questions

16 July 2025 · 5 min read time

Top liked users

  1. Taxduck

    (Taxicorn)

    327 likes

  2. PayrollDeanne

    (Taxicorn)

    318 likes

  3. Bruce4Tax

    (Taxicorn)

    192 likes

  4. YellowPotato

    (Taxicorn)

    145 likes

  5. Peter_Clyne

    (Superuser)

    101 likes

Top contributors

  1. PayrollDeanne

    (Taxicorn)

    1328contributions

  2. Taxduck

    (Taxicorn)

    1311contributions

  3. YellowPotato

    (Taxicorn)

    580contributions

  4. Bruce4Tax

    (Taxicorn)

    526contributions

  5. YEP

    (Devotee)

    280contributions

Loading
Business income from foreign client | ATO Community