I am a Singaporean based in Singapore and attend Board meetings (less than 50 days) in Aus and paid Director's fees. Singapore and Aus have a double tax treaty. Do I need to pay Aus taxes ?
All replies
Hi @carmenwee,
Director's fees paid by an Australian company are generally considered Australian-sourced income, even if the work is performed partly or entirely outside Australia. This means they are taxable in Australia, regardless of the number of days you spend onshore.
Based on what you've shared you'd be a foreign resident for tax purposes (under the 183-day residency test) because you spend less than 50 days consecutively in Australia and don't have ties here.
If you have an Australian Tax File Number (TFN):
· the company must withhold tax at the non-resident rates
· you’ll need to lodge an Australian tax return to report this income and potentially claim any overpaid tax.
If you don't have a TFN:
· the company withholds tax at the top marginal rate (currently 45%) from your payments
· you can't lodge a tax return or claim a refund without a TFN.
You should check the specific provisions in the tax treaty between Australia and Singapore. If you've paid tax in Singapore on this income, you may be entitled to relief from double taxation.
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