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Tax obligation while overseas

Newbie

Views 405

Replies 1

Hi,

 

I am single.

I have a property in Australia.

I am a full-time employee of an Australian company. I have a work agreement that I work overseas for about 5 months each year and the rest of the year I will be working in Australia.

I stay with my family while working overseas. 

 

I have been in overseas since late Dec19 until now due to COVID-19. My company and I are concerend that because I am out of Australia for more than 183 days, I would be taxed as non-Australian resident? is that correct for my situation?

 

The argument is that now there are flights available so I must come back to Australia if I want to be taxed as Australian resident. Personally to me, the situation at the moment is not 100% safe. Additionally I have to pay the quarantine fee upon return. I am on reduced working hours. So I do plan to stay overseas for the next few months (or however long need be) then I will come back to Australia. I haven't rent out my property in Australia. My friends have been helping me looking after the house when I'm overseas. 

 

With that, which category should I be taxed? as Australian resident or non-Australian resident? Can I use your reply as reference and forward to my company so that they are comfortable and aware of how to pay my tax to the ATO?

 

Another question is that if choose to be non-Australian for tax purpose (at the last resort which I don't want), does that mean I can stay and work overseas as long as I want? 

 

Thank you.

 

Regards,

Anh

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Champion

Replies 0

Hi @Anh_Nguyen 

 

We have mulitple 'Residency Tests' you can use to determine how you will be taxed. If your property in Australia is your permanant permanent place of abode, the 'Domicile Test' may be an effective test to use when determining your residency. In addtion, being out of Australia for more than 183 days would not apply if you pass the 'Domicile Test'.

 

To answer your last question, if you were a foreign resident, you would be able to work overseas for as long as you wanted.

If you want us to take a closer look at your situation, you can request an early engagement discussion with us.

 

Hope this helps!

 

 

1 REPLY 1

Most helpful response

Champion

Replies 0

Hi @Anh_Nguyen 

 

We have mulitple 'Residency Tests' you can use to determine how you will be taxed. If your property in Australia is your permanant permanent place of abode, the 'Domicile Test' may be an effective test to use when determining your residency. In addtion, being out of Australia for more than 183 days would not apply if you pass the 'Domicile Test'.

 

To answer your last question, if you were a foreign resident, you would be able to work overseas for as long as you wanted.

If you want us to take a closer look at your situation, you can request an early engagement discussion with us.

 

Hope this helps!