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Digital Nomad Overseas Foreign Taxing

Newbie

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Hi everyone, was hoping someone could shed some light on this one.

 

Australian citizen and taxable resident here.

 

I'll be living overseas shortly and am currently contracting for a couple of Australian companies using my ABN and getting paid into an Australian bank (none of this will change)

 

I'll be moving overseas as a resident (for a year or two) which will require me to pay taxes in that country due to the work being done "domestically". My ABN location would need to change also presumably as the work will be done outside AU.

 

When doing my tax return in Australia, does that then mean that I claim this money as a "foreign source" and then offset any tax paid? The country I'll be living in has a tax treaty with Australia. How does this all work so I don't get taxed twice?

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Most helpful response

ATO Community Support

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Hello @rwafl

 

Welcome to ATO Community Smiley Happy

 

The income you need to declare and the tax consequences will depend on whether you remain an Australian resident for tax purposes.

 

The income you receive from Australian companies while overseas is still considered Australian income, not foreign income.

 

If you remain an Australian resident, you will need to declare your worldwide income on your tax return, even if you have already been taxed on the income overseas. If you have already been taxed overseas, you may be entitled to a foreign income tax offset, which relieves double taxation.

 

If you become a foreign resident, you will only need to declare your Australian income in your tax return.

 

You can find more information on our website about how your residency affects your tax return.

 

Hope this helps. Have a great day Smiley Happy

 

 

 

 

 

 

1 REPLY 1

Most helpful response

ATO Community Support

Replies 0

Hello @rwafl

 

Welcome to ATO Community Smiley Happy

 

The income you need to declare and the tax consequences will depend on whether you remain an Australian resident for tax purposes.

 

The income you receive from Australian companies while overseas is still considered Australian income, not foreign income.

 

If you remain an Australian resident, you will need to declare your worldwide income on your tax return, even if you have already been taxed on the income overseas. If you have already been taxed overseas, you may be entitled to a foreign income tax offset, which relieves double taxation.

 

If you become a foreign resident, you will only need to declare your Australian income in your tax return.

 

You can find more information on our website about how your residency affects your tax return.

 

Hope this helps. Have a great day Smiley Happy