Announcements
COVID-19 update: We’ve published information on the Jobkeeper payment, early access to super, and cash boost for businesses and employers. You can also check out the COVID-19 board.

ATO Community

International Stock Investment and Tax Implication

Newbie

Views 249

Replies 1

Hi everyone,

 

I am new to this community. Apologies if someone has already asked this question.

 

I am planning to invest in Nepal's Share Market. As it's not listed under Australian's online broker account, it has to be done manually transferring money to Nepal.

 

My question is when you bring that money back to Australia, how does the tax work?

 

We need to pay 5% of capital gain in Nepal as of now. Do we need to pay tax again based on the personal tax bracket if there is a profit?

 

Also, am I entitled to a 50% discount if we make a capital gain on shares we’ve held for more than 12 months as an investor?

I am a permanent resident of Australia.

 

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

Taxicorn

Replies 0

As an Australian Resident for tax, you will pay tax and declare all of your worldwide income in your Australian tax return.

 

If you have sold shares from anywhere in the world the same rule applies, no discount for under 12 months and 50% for longer than 12 months holding.

 

If you have had any tax taken out from overseas with a country that has a double tax agreement with Australia then there will be an opportunity for a Foreign Income Tax Offset.

 

I don't believe that Australia has an agreement with Nepal.

 

https://www.ato.gov.au/General/International-tax-agreements/

 

1 REPLY 1
Highlighted

Best answer

Taxicorn

Replies 0

As an Australian Resident for tax, you will pay tax and declare all of your worldwide income in your Australian tax return.

 

If you have sold shares from anywhere in the world the same rule applies, no discount for under 12 months and 50% for longer than 12 months holding.

 

If you have had any tax taken out from overseas with a country that has a double tax agreement with Australia then there will be an opportunity for a Foreign Income Tax Offset.

 

I don't believe that Australia has an agreement with Nepal.

 

https://www.ato.gov.au/General/International-tax-agreements/