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Overseas income into foreign account

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Hi,

 

Currently I am living in the UK on a tier 5 youth working visa. I am receiving royalty payments from the US, and for tax purposes I have  provided my Australian tax information to the US company.

 

So, my questions are two-fold:

1. Is it correct to have these income payments taxed under Australian taxation, as opposed to UK?

 

2. Do I have to recieve these payments into an Australian bank account? They initailly go into an online financial service (eg. paypal, payoneer, skrill etc) then I withdraw from a service. I would prefer to withdraw into my UK bank account but unsure if it needs to go into an Australian based bank first.

 

Can anyone provide some clarity around this?

 

Many thanks!

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ATO Community Support

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Hi @KentJ

 

Some good questions. The answer really hinges on if you an Australian resident for tax purposes. If you are not then you are only expected to declare your Australian income not your foreign income with the exception of overseas HELP loan repayments. I would be approaching the UK tax office for your obligations in the UK as that is for them to direct you.

 

As for where or how you access the money, as long as you declare it that's fine. But again, that will only be relevant if you are required to declare it as an Australian resident for tax purposes. See Work out your residency status for tax purposes

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Initiate

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Hi Kent,

 

I would presume that if you are lodging a tax assessment as an Australian resident for taxation purpose, all income, regardless where they are from, should be declared.

 

This option is available as "Other Foreign Income" tab. If you paid tax already to USA; I think there there are rules avoid double taxation such that if you paid higher tax to US, then Australia won't refund you the difference, but if you pay less tax than USA, then you will have to pay tax to ATO. That's the gist of how I understand it. For how it is filled in an ATO form; perhaps an official ATO rep can bring more clarity, but I will definately include so to not have trouble in future.

Most helpful response

ATO Community Support

Replies 0

Hi @KentJ

 

Some good questions. The answer really hinges on if you an Australian resident for tax purposes. If you are not then you are only expected to declare your Australian income not your foreign income with the exception of overseas HELP loan repayments. I would be approaching the UK tax office for your obligations in the UK as that is for them to direct you.

 

As for where or how you access the money, as long as you declare it that's fine. But again, that will only be relevant if you are required to declare it as an Australian resident for tax purposes. See Work out your residency status for tax purposes