Tax Implications of Working from Overseas for Australian Company

Hi all,

Hope you all are doing well. Stay safe!

I am thinking of working from overseas (India) for an Australian company that I have been employed with for over 3 years as a permanent employee. I am thinking of moving overseas for 2-3 year to work from there and come back. I do not own a property in either country and would like to know what the tax implications would be? Will I be treated as Non-Resident for tax purpose in Australia? What other tax related implications I should be aware of?

Any advise if much appreciated. Please let me know if you require additional information.

Thanks and Stay Safe!

Comments

  • +1 vote

    What is your nationality ?

    I’d say Resident if your ties are with australia, I.e. likely to return vs not.

    I’d be checking how the Indian gov will tax you on your overseas earnings, and whether chance of double tax, search google for that one.

  • +2 votes

    what does owning a property have to do with working overseas?

  • -1 vote

    If you are still getting paid from an Australian bank, and you are still working under your Australian contract, then if you spend 183 days in that financial year overseas, you will be considered as a non-resident for tax purposes. Which, unfortunetaly, means you will get taxed hard and won't be eligible for any tax offsets :(

    • +1 vote

      The 183 day rule only applies for people coming into Australia and that’s the threshold for them to be considered tax resident in australia. It doesn’t apply to people leaving australia for more than 183 days. You could leave australia for 2+ years and still be considered an Australian tax resident the whole time if you fulfil other criteria for tax residency

      https://www.ato.gov.au/Individuals/Coming-to-Australia-or-go...

      183-day test

      This test only applies to individuals arriving in Australia. You will be a resident under this test if you're actually present in Australia for more than half the income year, whether continuously or with breaks.

  • +1 vote

    Have you discussed this with your company? It will create PE issues for your company which maybe something they might not like.

    https://www.ato.gov.au/forms/international-dealings-schedule...

  •  

    I think the thing to do is for the company to open a branch in that country and pay you there. I believe there are services for this kinda thing though I'm not sure if it's available in every country.

  •  

    @Hi Donaldhump, I am an australian citizen and resident of india (not dual citizenship but have full work rights) and I will likely return (2-3 yrs on table) as per the arrangements I am working on with my company.

    @Hi Supasaiyan: I read on a website the receiving rental income MAY have an impact

    @Hi Blue Cat: Would setting "Non resident" in paycalculator.com.au give me an accurate estimate of tax

    @Realsteel: Our HR will consult a tax agent once I confirm I am happy with extra tax implications

    @Raptormesh: I am the only employee option this for family reasons mostly due to Covid

    Thanks all for the response

  •  

    Question: Do you want to be taxed as Australian Resident or not?

    If you want then you are mostly likely yes :

    1. Australian Citizen
    2. Working for Australian Company
    3. Paid in Australian bank
    4. Will come back to Australia after the terms are finished
    5. Banks/financial/friend/family interest in Australia

    If you do no want :

    1. Before leaving Australia, just tell ATO that you are leaving Australia and looking to form your residency in India.
  •  

    I have heard that apparently new laws are about to be passed that you will be classified as an Australian tax resident if you spend more than 45 days in Australia in a financial year. I believe this will not come into effect until the financial year after the law is passed but if you are planning to be away up to 3 years, you may find yourself affected by these amendments.

  •  

    People that have a permanent domicile in a different country for x years pay zero tax to their native country.

    This doesn't work for US citizens because Uncle Sam will hunt them down no matter where they're in the world.