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Hi there,
I was hoping to get some general advice regarding foreign income tax, residential status, and with regards for transparency - any solution to avoid paying tax or as little as possible. I work on a privately owned superyacht and spend >6 months outside of Australian annually. I am still a tax paying resident of Australia so from what I understand I am obliged to declare and pay tax on all global income. What are my options to avoid doing so? Can I remain a resident but avoid the taxes due to earning money outside of Australia and not living in Australia for more than 6 months? Would I need to renounce my residency to achieve a tax free status? I would prefer not to lose my resident status as I wish to come back and live in Australia at an unknown date in the future but for now I am happily earning and living outside Australia and wish to save all the money I can.
thank you very much.
Hiya @Schoonermen1955,
A few things, before I jump into to respond to some of your questions, the first is that I can only provide general information, the second is, I can only provide information about Australia.
The first thing to look at is residency. It is important to know there is a difference between being a resident and being a resident for tax purposes. What we are talking about, is being a resident for tax purposes. There is a page on our website that will help you work out your tax residency.
If you are a resident for tax purposes, you do need to lodge an income tax return every year and declare your worldwide income. There are some instances where you would not be paying tax on that income, for instance if the income was being taxed already in certain tax treaty countries.
If you want specific information regarding you personal situation and advice on how to proceed, I would recommend seeking the services of a tax agent/accountant. They will be able to look at your circumstances and advise on the best way to handle your affairs.
Hiya @Schoonermen1955,
A few things, before I jump into to respond to some of your questions, the first is that I can only provide general information, the second is, I can only provide information about Australia.
The first thing to look at is residency. It is important to know there is a difference between being a resident and being a resident for tax purposes. What we are talking about, is being a resident for tax purposes. There is a page on our website that will help you work out your tax residency.
If you are a resident for tax purposes, you do need to lodge an income tax return every year and declare your worldwide income. There are some instances where you would not be paying tax on that income, for instance if the income was being taxed already in certain tax treaty countries.
If you want specific information regarding you personal situation and advice on how to proceed, I would recommend seeking the services of a tax agent/accountant. They will be able to look at your circumstances and advise on the best way to handle your affairs.
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