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Tax Residency - Tax Treaty with China

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Newbie

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We’re a Chinese company based in Shanghai. We employed a manager in Shanghai who holds Chinese Citizen and Australia PR. He has been living with his family in Shanghai since he was born. We have been paying all his compensation in Shanghai. Last year he went to Australia alone, settled his primary home, and stayed in Australia for accumulative 200 days, then came back to Shanghai. During his staying in Australia, he work remotely for Shanghai business and receive his compensation in Shanghai. He transferred some bank savings from Shanghai to Australian bank account for property settlement and all kinds of payments.

My question is whether he would be recognized as tax resident in Australia last year? I checked Tax Treaty between Australia and China and found his suits article 4 Residents in which he should be solely Chinese tax resident last year. Though he has established a home in Australia, his permanent home is still in Shanghai, meanwhile his family and job are in Shanghai, and all his compensation are paid by our company which is also a Chinese resident.

Appreciate tax professionals and tax commissioners’ reply. Thanks.
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Devotee Registered Tax Practitioner

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Though he has established a home in Australia, his permanent home is still in Shanghai, meanwhile his family and job are in Shanghai,

 

Which together means he is not an AUS resident for tax purposes.

 

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Most helpful response

Devotee Registered Tax Practitioner

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Though he has established a home in Australia, his permanent home is still in Shanghai, meanwhile his family and job are in Shanghai,

 

Which together means he is not an AUS resident for tax purposes.