Hi, my company has engaged a non-Australian resident as a non-executive director. He is based in overseas and no TFN or work pass.
We will pay him monthly director fee. Do we need to deduct and withhold the tax?
Can he apply for the TFN ?
Thanks
Brenda
Hi @brenda,
Yes, they can apply for a TFN if they have Australian sourced income.
Tax will need to be withheld on any Australian sourced income. If they don't have a TFN, the company will need to withhold the top marginal rate.
If they're considered a foreign resident for tax purposes, they would only need to declare Australian sourced income in their tax return. They wouldn't need to declare any foreign income.
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