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WHV / Sole trader with international income

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Hi there, 

 

I would like to ask for some information regarding my situation.

 

- Currently on second year WHV class 417

- Looking at setting up as sole trader to provide software developing services to a company in the Netherlands. I cannot setup as a sole trader in The Netherlands as I am currently considered a non-resident there. Moreover, I should pay taxes in Australia since I'm here on a WHV, right?

What taxes do I need to pay/withold if I invoice an overseas company?
All income should be taxed in my personal income tax, right?

 

Thanks in advance.

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Community Manager

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Hi @perseus79,

 

Yes, you would pay the taxes here.

 

Any money you earn will just be added to your personal income and you would pay tax on it. As this is your first year running a business, it's hard to know what your taxable income will be as we won't know exactly how much you'll earn and what deductions you'll be able to claim in your return. Therefore, we can't advise what tax rate you'll pay and how much you'll need to put aside. 

 

Sole traders lodge the same income tax return as individuals and report their buisness income and expenses in the business section. Sole traders also pay the same tax rate as individuals.

 

Thanks, NateH

1 REPLY 1
Highlighted

Most helpful response

Community Manager

Replies 0

Hi @perseus79,

 

Yes, you would pay the taxes here.

 

Any money you earn will just be added to your personal income and you would pay tax on it. As this is your first year running a business, it's hard to know what your taxable income will be as we won't know exactly how much you'll earn and what deductions you'll be able to claim in your return. Therefore, we can't advise what tax rate you'll pay and how much you'll need to put aside. 

 

Sole traders lodge the same income tax return as individuals and report their buisness income and expenses in the business section. Sole traders also pay the same tax rate as individuals.

 

Thanks, NateH