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Am I a resident for tax purposes?

Newbie

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Hello,

my bank is threatening to restrict my bank account unless I update my tax status. I am a dual citizen (Czech Republic + AUS), I used to live in AUS but for the last 6 years have lived back in the CZ with short trips back here. The financial year finishes in CZ on December 31 and so I have already lodged the tax return there for 2020. I returned to AUS in December 2020 and have been living and working here (same place the whole time) for the past five months. My partner is Australian and with COVID situation being this way, we are planing on staying here until evertything calms down but we want to keep travelling back and forth once possible again as we own a house in CZ. 

 

Is my status therefore a Resident for tax purposes in both countries? And do I have to include my earnings from CZ in the coming tax return here in AUS? 

 

Thank you in advance!

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Hi @dtereza1

 

You'll need to determine your tax residency by following our residency tests. Broadly speaking, you will be an Australian resident for tax purposes if your home is in Australia. That means most of your social/financial/familial ties are in Australia.

 

Your residency status will change whether you report your worldwide income or not. Australian residents for tax purposes report their worldwide income. They can claim a foreign income tax offset for income taxes paid in other countries. Foreign residents report only their Australian income.

 

You can read about Your tax residency and income tax for foreign residents on our website.

 

2 REPLIES 2

Most helpful response

ATO Certified Response

ATO Community Support

Replies 1

Hi @dtereza1

 

You'll need to determine your tax residency by following our residency tests. Broadly speaking, you will be an Australian resident for tax purposes if your home is in Australia. That means most of your social/financial/familial ties are in Australia.

 

Your residency status will change whether you report your worldwide income or not. Australian residents for tax purposes report their worldwide income. They can claim a foreign income tax offset for income taxes paid in other countries. Foreign residents report only their Australian income.

 

You can read about Your tax residency and income tax for foreign residents on our website.

 

Newbie

Replies 0

Hello ,

thank you for the explanation!

I appreciate it,

Tereza