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Re: Contractor providing services from an overseas location.

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Newbie

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Hi there;

 

I am an Australian citizen and have been offered a contract by an Australian company to provide services from an overseas location remotely (e.g. through the internet e-meetings etc..) for an indefinate period of time (2 to 3 years). My highlevel questions in short are: 

 1- Do I have to register as a sole trader? (I would think so)

 2- Am I still requred to pay super?

 3- Can an Australian sole trader be working from an overseas location for an indefinate time period? if so:

 4- Can I claim espenses incuured overseas such as a home/office, travel, internet etc?

 5- If all my incom is taxed in Australia, Are there any offsets for leaving abroad as a sole trader?

I hope you can shed some light here as I am super confused on what I can or cannot do.

Thank you in advance. 

 

 

 

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ATO Certified

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Hi @lorincon

 

Welcome to our Community!

 

Generally speaking, you will need to determinme if you're a employee or contractor of the company you're working for. If you're a contractor and considered a sole trader, you'll need to register for an Australian Business Number (ABN), and your TFN will be linked to you as a sole trader. You can work out if your an employee or contractor by using the tool on our website, which will also help determine if you're an employee for super purposes and who will be require to pay your super. 

 

If you're a sole trader, this income will need to be reported as business income in your tax return. You do this by lodging an individual tax return, but report your income as sole trader business.

 

There may be certain deductions you can claim relating to your work as a sole trader and you may be entitled to the small business tax offset. You can find more information on our website. 

 

Thanks, JodieH.

2 REPLIES 2

Megastar

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Hi Iorincon, 

1. As far as I know, you don’t have to register separately to be a sole trader, you can use your individual tax file number when lodging your income tax return.

 

2. As a sole trader, you are responsible for paying your worker's super. You're also responsible for your own super and may choose to pay it into a fund for yourself to help save for your retirement.

 

3. Yes, just include your income under income from Foreign source head. 

4. Yes you can claim work related expenses 

5. If you pay any tax outside outside australia, you can claim offset for that tax subject to certain limits. Please refer the below link 

https://www.ato.gov.au/Individuals/Tax-return/2017/In-detail/Publications/Guide-to-foreign-income-ta...

 

Hope it helps

 

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Best answer

ATO Certified

Community Support

Replies 0

Hi @lorincon

 

Welcome to our Community!

 

Generally speaking, you will need to determinme if you're a employee or contractor of the company you're working for. If you're a contractor and considered a sole trader, you'll need to register for an Australian Business Number (ABN), and your TFN will be linked to you as a sole trader. You can work out if your an employee or contractor by using the tool on our website, which will also help determine if you're an employee for super purposes and who will be require to pay your super. 

 

If you're a sole trader, this income will need to be reported as business income in your tax return. You do this by lodging an individual tax return, but report your income as sole trader business.

 

There may be certain deductions you can claim relating to your work as a sole trader and you may be entitled to the small business tax offset. You can find more information on our website. 

 

Thanks, JodieH.