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_Nikos(Newbie)Newbie
9 Mar 2021

Hello,

I bought shares on the ASX four years ago (March 2017) while I was Resident for tax purposes.

Because of Covid, I had to leave the country (August 2019), I no longer have a valid visa and won't be applying for one.

I held for more than 2 years while being in Australia as a Resident for tax purposes making me entitled to pay tax only on 50% of the profit (Capital Gain Tax Discount). Does this rule still hold?

And how much tax will I have to pay when I sell with profit now that I am non-resident?

Regards,

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BlakeATO(Community Support)Community Support
10 Mar 2021

Hi @Nikos,

Foreign and temporary residents are only liable for CGT on tangible Australian property.

Non-tangible assets, like shares, are taken to have been disposed of at the time you cease to be a resident. You are taken to have disposed of them at market value at that time.

This means that from the time your tax residency changed, you'll need to report the capital gains from those shares.

You'll still be eligible for the discount method, since you're taken to have disposed of the shares at the date you stop being a resident.

Your tax will be calculated on your marginal rates as a resident for tax purposes on that return.

If you've already lodged your return for that time, you'll need to lodge an amendment.

You can read more about ceasing to be an Australian resident and how to correct (amend) an income tax return on our website.

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Most helpful reply

BlakeATO(Community Support)Community Support
10 Mar 2021

Hi @Nikos,

Foreign and temporary residents are only liable for CGT on tangible Australian property.

Non-tangible assets, like shares, are taken to have been disposed of at the time you cease to be a resident. You are taken to have disposed of them at market value at that time.

This means that from the time your tax residency changed, you'll need to report the capital gains from those shares.

You'll still be eligible for the discount method, since you're taken to have disposed of the shares at the date you stop being a resident.

Your tax will be calculated on your marginal rates as a resident for tax purposes on that return.

If you've already lodged your return for that time, you'll need to lodge an amendment.

You can read more about ceasing to be an Australian resident and how to correct (amend) an income tax return on our website.

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Tax when selling shares as non resident that were bought while being resident. | ATO Community