Hi all, just trying to understand what this paragraph means on the ATO website about temporary residents, whether they need to declare foreign income or not:
Temporary residents
If you have a temporary visa, and neither you or your spouse is an Australian resident, you're a temporary resident. This means you only declare:
income you derived in Australia
any income you earn from employment or services performed overseas while you are a temporary resident of Australia.
Other foreign income and capital gains don't have to be declared.
So say someone is a temporary resident, living in Australia, still being paid monthly by a foreign company, into a foreign bank account, does he/she need to declare this income to ATO (and hence pay tax to Australia)?
What I don't understand is the definition of income from employment or services performed overseas. Yes, the money is paid by a foreign company, but do we have to separate between
- salary
- retirement plan
- board membership
Which one is classified as income from employment or services performed overseas?
You'll need to speak to the ATO/an accountant with a more specific definition of what the three things you say are (in your circumstances) - 2 of them sound like they're definitely income and 1 might not be. But the nature of the payments and why they are made will be the ultimate decider.