ATO Community

Superannuation Death Benefit paid to a Non Resident

Ask a question
Highlighted

Newbie

Views 170

Replies 3

Hi team,

 

I'm seeking some assistance as I cannot pin point what will happen for my friend in the following situation. 

 

His son was on a working holiday and unfortunately passed away. He had superannuation ($30,000) with built in default life insurance ($200,000). My friend has been approved by the trustee’s and they will release funds to him as a non dependant as a taxed benefit.

I’m trying to figure out the tax treatment of these funds as he is a non resident residing in the Republic of Ireland – he’s applied for a TFN for a non resident.

 

I can see that there is a potential for no tax payed but it's dependent upon the tax treaty with Ireland but there is no mention as to how they treat these funds – please help!!

 

1 ACCEPTED SOLUTION

Accepted Solutions

Best answer

Taxicorn

Replies 2

This is covered here:

 

https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/withdrawing-your...

 

They will be the same as a non-dependant.

 

3 REPLIES 3

Best answer

Taxicorn

Replies 2

This is covered here:

 

https://www.ato.gov.au/individuals/super/in-detail/withdrawing-and-using-your-super/withdrawing-your...

 

They will be the same as a non-dependant.

 

Newbie

Replies 1

Hi MacFanBoy

 

Yep I've seen this it's just this part that confuses me:

 

The payment is deemed to be Australian sourced income, however, if you live in, or you are a tax resident of, a country with a double tax agreement with Australia, there may be no Australian tax imposed.

Check the taxation laws of the country where you are a tax resident and whether a double tax agreement exists between Australia and that country.

 

I need to find out who Ireland will treat this income and what type of incom it's classed as...

 

Taxicorn

Replies 0

 

If he is a resident of Ireland then he will be taxed on this income according to their income tax laws.

 

If any money is withheld in Australia then there will be an adjustment to the amount of tax that was withheld to ensure that he only pays it once and at their level.

 

 

Top Solution Authors