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Obligations for International Investment Account for Non-Residents

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I have a realtive who is an Indian resident and lives in India. He has a Bank account here in Australia that he opened when he last visited to Australia. He has been transferring some amounts to his account for savings which he wants to later use to invest in a property in Australia. 

 

He is Non-resident and doesn't have a Tax File file number.

 

1. So what are his Tax Obligations if any? Does he need to pay any Tax on that transfer or savings?

 

2. Is there a limit on how much amount can he Transfer or Save in this account?

 

3. Can he use this money to buy an Investment property in Australia?

 

4. What information does he need to provide about the account or Transfer to ATO if he needs to?

 

Thanks

 

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Most helpful response

Devotee

Replies 0

1. So what are his Tax Obligations if any? Does he need to pay any Tax on that transfer or savings?

if he declare that he is a non resident and NR WHT was taken out, nothing - he pays tax in india.

 

2. Is there a limit on how much amount can he Transfer or Save in this account?

no limit but note that interest is subject to WHT (see 1)

 

3. Can he use this money to buy an Investment property in Australia?

Depends on the FIRB restrictions. IIRC its limited to new property.

 

 

4. What information does he need to provide about the account or Transfer to ATO if he needs to?

If he doesnt do the WHT in (1) then he needs to lodge a tax return to pay the WHT.

 

1 REPLY 1

Most helpful response

Devotee

Replies 0

1. So what are his Tax Obligations if any? Does he need to pay any Tax on that transfer or savings?

if he declare that he is a non resident and NR WHT was taken out, nothing - he pays tax in india.

 

2. Is there a limit on how much amount can he Transfer or Save in this account?

no limit but note that interest is subject to WHT (see 1)

 

3. Can he use this money to buy an Investment property in Australia?

Depends on the FIRB restrictions. IIRC its limited to new property.

 

 

4. What information does he need to provide about the account or Transfer to ATO if he needs to?

If he doesnt do the WHT in (1) then he needs to lodge a tax return to pay the WHT.