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Overseas Contractor working for Australian Company

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Hi there;

 

I am an Australian Permanent Resident working for a Australian Global Consulting Company. I am planning to move overseas due to family issue. But I would like to work for my current company in a different way. My home country is mainland China, the company does not have registration in China.

 

I understand I need to find out two questions before you proivde me more detailed ansnwer.

1. Tax Residency

I will not be Australian resident for tax purposes, due to I will not live in the country for more than 183 days in a year, I will rent out my property in Australia and will have a permanent place to live in China.

 

2. Employee or Contractor

This is still under discussion with my compnay. My plan is to act as overseas contractor.

 

My question is more about the role and obligation as a overseas contractor.

Q1: I proposed to set up PayPal account and invoice as AUD, pay by credit card here, if I set up a company in China Mainland or Hong Kong, do I need to set up ABN in Australia? As I may provide services for other contries as well.

 

Q2: I could open up bank account in Hong Kong, Australia company can transfer money as AUD to my Hong Kong business bank account. As digital services exporter, do I still need to set up ABN in Australia? I need to deal with Hong Kong goverment for tax.

 

Q3: Assuming I am 100% overseas contractor, when I invoice, I don't need to add the 10% GST?

 

Thanks for your response in advance 

 

 

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Hi @AU_Concrete,

 

Thanks for getting in touch!

 

We can provide general information here on our Community and as we don't know all the details about your situation we can't advise if you'll need an ABN.

 

It will depend on your employment contract as to whether or not you're considered and employee or contractor. If you're a contractor you'll need to work out if you're entitled to an ABN, as not everyone is. You can work out if you're entitled to an ABN on the Australian Business Register website and answer a series of questions when applying for one to determine your eligibility.

 

Whether you'd be required to be registered for GST would depend on a number of factors. Generally however, a supply of a service is GST-free if the recipient of the service is outside Australia.

 

If you're still unsure, you can contact our Early engagement team by submitting a request form or requesting a call back and an officer will contact you to discuss your situation further.

 

Thanks.

1 REPLY 1
Highlighted

Best answer

ATO Certified

Community Support

Replies 0

Hi @AU_Concrete,

 

Thanks for getting in touch!

 

We can provide general information here on our Community and as we don't know all the details about your situation we can't advise if you'll need an ABN.

 

It will depend on your employment contract as to whether or not you're considered and employee or contractor. If you're a contractor you'll need to work out if you're entitled to an ABN, as not everyone is. You can work out if you're entitled to an ABN on the Australian Business Register website and answer a series of questions when applying for one to determine your eligibility.

 

Whether you'd be required to be registered for GST would depend on a number of factors. Generally however, a supply of a service is GST-free if the recipient of the service is outside Australia.

 

If you're still unsure, you can contact our Early engagement team by submitting a request form or requesting a call back and an officer will contact you to discuss your situation further.

 

Thanks.