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Can you trade on ASX whilst on Visitor Visa? Any additional tax obligations?

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I'm an Australian citizen. My wife (Canadian) is 6 months into a 12 month Visitor Visa Subclass 600, and has applied for spouse sponsored permanent residency. She is eligible for a bridging visa whilst waiting. Is she allowed to trade shares on the ASX? If so, for tax purposes is she treated the same as an aus citizen? Eg. Will she have any additional tax obligations?

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Hi @Tim6

 

To check what limitations a visa has, you'll need to check with Home Affairs directly.

 

She will need to work out her tax residency.

 

If she works out she is an Australian resident for tax purposes, she will be liable for capital gains on shares as an investor.

 

If she works our she is a foreign resident for tax purposes, she will not be liable for capital gains on shares as an investor. Foreign residents are only liable for capital gains on real Australian taxable property.

 

If she is a trader, though, she'll be running a business, and will be liable for income tax regardless as to her residency for tax purposes.

 

You can read more about share investing vs trading and foreign residents and CGT on our website.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Tim6

 

To check what limitations a visa has, you'll need to check with Home Affairs directly.

 

She will need to work out her tax residency.

 

If she works out she is an Australian resident for tax purposes, she will be liable for capital gains on shares as an investor.

 

If she works our she is a foreign resident for tax purposes, she will not be liable for capital gains on shares as an investor. Foreign residents are only liable for capital gains on real Australian taxable property.

 

If she is a trader, though, she'll be running a business, and will be liable for income tax regardless as to her residency for tax purposes.

 

You can read more about share investing vs trading and foreign residents and CGT on our website.