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Foreign company tax residency with remote worker in Australia

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I'm currently residing and working for an IT company incorporated in Switzerland that only carries on a business (ISP) locally in Switzerland.
It is not incorporated in Australia and it has absolutely no clients or any sort of business in Australia, so it is not carrying on business in Australia.

I'm a network engineer and have no management position at all.

I'm planning to come to Australia for a while and to continue working for the swiss company remotely with the same swiss contract. I have a valid australian work permit (189) so that aspect should not be an issue.
Tax residency for me as an individual is clear, but my company would like to confirm that they do not become tax resident in Australia just because I'm working remotely from Australia. I won't be interacting with anyone in Australia for the company, basically just using my laptop to continue the work I currently do in Switzerland.

According to https://www.ato.gov.au/business/international-tax-for-business/working-out-your-residency/ it seems clear to me that they would not be deemed tax resident:

 

A company is a resident of Australia if:

  • it is incorporated in Australia, or
  • although not incorporated in Australia it carries on business in Australia and has either  
    • its central management and control in Australia
    • its voting power controlled by shareholders who are residents of Australia.

Since the company is not incorporated in Australia and it does not carry on any sort of business in Australia (except that it would allow me to continue to work for them remotely from Australia) it should stay non-resident for tax purposes in Australia.

Also I'm neither central management (not management at all) and don't excert any kind of control over the company.

The voting power of the company belongs to swiss residents.

Thus I don't see any risk that the company could be considered as tax resident of Australia by the ATO, even with TR 2018/5.

 

Can someone confirm that this view is correct?

 

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Hi @Chris_CH,

 

Welcome to our Community!

 

We can provide general information about tax and super topics here on our Community and generally speaking, a company would need to meet the criteria outlined on our website to be considered a resident of Australia.

 

As we don't know all the details about the company we can't confirm that the company isn't a resident, however if the company would like a more tailored response they can contact our Early engagement team.

 

Thanks, JodieH.

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Most helpful response

ATO Certified Response

Community Support

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Hi @Chris_CH,

 

Welcome to our Community!

 

We can provide general information about tax and super topics here on our Community and generally speaking, a company would need to meet the criteria outlined on our website to be considered a resident of Australia.

 

As we don't know all the details about the company we can't confirm that the company isn't a resident, however if the company would like a more tailored response they can contact our Early engagement team.

 

Thanks, JodieH.