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Temporary residents - Double tax relief

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Are temporary residents entitled to double tax relief? 

 

If an individual is a temporary resident in Australia and earns employment income sourced in the UK, do the double tax relief articles apply?

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ATO Certified Response

Community Manager

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Hi @Alphatax

 

If you have a temporary visa, and neither you or your spouse is an Australian resident within the meaning of the Social Security Act 1991 (that is, not an Australian citizen or permanent resident), you're a temporary resident. This means you only declare income you derived in Australia, plus any income you earn from employment performed overseas for short periods while you are a temporary resident of Australia.

 

If you are an Australian resident for tax purposes and meet the requirements to be a temporary resident, the temporary resident rules mean that:

  • Most of your foreign income is not taxed in Australia except income earned from employment or services performed overseas while you are a temporary resident. This income is subject to income tax and would still be declared in your return for the year in which you earned it. If you paid tax in a foreign country, you may be entitled to claim a foreign income tax offset when you lodge and declare that income in your Australian tax return.

 

Other foreign income and capital gains don't have to be declared.

 

If you needed assistance working out your residency status for tax purposes we have a residency questionnaire which will help you determine that.

 

Hope this helps! If you need any further assistance call us on 13 28 65.

 

Thanks, Nate

1 REPLY 1

Most helpful response

ATO Certified Response

Community Manager

Replies 0

Hi @Alphatax

 

If you have a temporary visa, and neither you or your spouse is an Australian resident within the meaning of the Social Security Act 1991 (that is, not an Australian citizen or permanent resident), you're a temporary resident. This means you only declare income you derived in Australia, plus any income you earn from employment performed overseas for short periods while you are a temporary resident of Australia.

 

If you are an Australian resident for tax purposes and meet the requirements to be a temporary resident, the temporary resident rules mean that:

  • Most of your foreign income is not taxed in Australia except income earned from employment or services performed overseas while you are a temporary resident. This income is subject to income tax and would still be declared in your return for the year in which you earned it. If you paid tax in a foreign country, you may be entitled to claim a foreign income tax offset when you lodge and declare that income in your Australian tax return.

 

Other foreign income and capital gains don't have to be declared.

 

If you needed assistance working out your residency status for tax purposes we have a residency questionnaire which will help you determine that.

 

Hope this helps! If you need any further assistance call us on 13 28 65.

 

Thanks, Nate