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Remote Work for an International Company

Newbie

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Hi there, 

 

I am an Australian Citizen currently in Canada working for a Canadian company. My IEC visa expires in August 2021 but they want to keep me on as a remote consultant. I will be travelling to London/France for a few months visiting family who have PR there en route home to Australia and planned to work the entire time. Is this possible tax wise, or would there be implications from travelling through EU? My company asked for evidence that I can do this so any insight would be helpful as I can't find any resources on this situation!

 

Thanks,

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ATO Certified Response

ATO Community Support

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Hi @DaisyMel

 

The tax implications will mostly be about your tax residency and super.

 

While you are a foreign resident for tax purposes, your tax rate will be the foreign resident rates. If when you come to Australia you then become a resident for tax purposes, your tax rate will change. When this happens, you'll need to do a new withholding declaration to change the amount they withhold from you.

 

For super, if you're a foreign resident performing work overseas, your employer does not need to pay you super. However, if you're a resident performing work overseas, or you're in Australia, they'll need to pay you super.

 

There may be tax implications in the countries you travel through, but you'll need to check with those countries specifically.

 

You can read about your tax residency and work out if you have to pay super on our website.

3 REPLIES 3

Newbie

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@BlakeATO @NicATO  Can anyone assist?

Newbie

Replies 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @DaisyMel

 

The tax implications will mostly be about your tax residency and super.

 

While you are a foreign resident for tax purposes, your tax rate will be the foreign resident rates. If when you come to Australia you then become a resident for tax purposes, your tax rate will change. When this happens, you'll need to do a new withholding declaration to change the amount they withhold from you.

 

For super, if you're a foreign resident performing work overseas, your employer does not need to pay you super. However, if you're a resident performing work overseas, or you're in Australia, they'll need to pay you super.

 

There may be tax implications in the countries you travel through, but you'll need to check with those countries specifically.

 

You can read about your tax residency and work out if you have to pay super on our website.