Advisory Services - Individuals
When considering an overseas secondment you must first give consideration as to what your tax implications are in both the country you are moving to and the country you are leaving.
The questions to consider:
- How long is the secondment for?
- Is your family to travel with you, or remain behind?
- Will I remain a tax resident in my country of residence?
- Will I continue to remain an employee of my current employer?
- Am I to transfer to the overseas employing office and if so, what are the terms?
- Will I be a tax resident in the overseas country?
- Is there a double taxation agreement with the overseas country that I am being seconded too?
Your tax residency is fundamental to determine who has taxing rights over your worldwide income with particular reference to the salary being offered to you.
Your residency is often a significant issue, as residents of Australia are subject to income tax on their worldwide income, while non residents are only subject to Australian tax on their Australian source income and capital gains (subject to an overriding provisions of the double taxation agreement) – though at non resident rates of tax.
It is possible to be a dual resident with the overseas country. Should this be the case you would need to consider which country has overriding residency which is commonly referred to as treaty residency as it is the conditions set in the double taxation agreement which would determine this deciding point.
Those who are leaving Australia as holders of temporary visa may be eligible to claim a refund of superannuation contributions paid by their employers in Australia – known as the Departing Australia Superannuation Payment, or DASP.
Higher education loan repayments
If it is your intention to move and live overseas (for more than six months in any 12-month period or permanently), you are required to advise the ATO of the following:
- update your contact details
- submit an overseas travel notification within seven days of leaving Australia.
- report your worldwide income or a non-lodgment advice (if you don’t have income to report).
Once your residency position has been determined you can better understand who has taxing rights over your income along with your tax reporting obligations in both countries.
We at GM Tax provide fixed fee quotes for advisory work and tax returns.
If you are being seconded overseas and would like a fixed fee proposal from a firm of tax advisors that understands the issues affecting expats living and working overseas please complete our contact us button or by calling a GM Tax office closest to you.
GM Tax also offers the following services:
- Tax planning advice and guidance with regards to your residency status it and also domicile status in the context of Inheritance Tax (IHT) planning.
- Preparation of tax returns, with all returns electronically lodged where possible.
- Advice on the tax position where a property is being let while a taxpayer is living overseas.
- Assisting departing temporary residents with the recovery of superannuation monies under Australia’s DASP arrangements
- Assistance to ensure that income is correctly taxed and not taxed twice, or double taxed.
- This last point is particularly relevant to those who have income or capital gains which may also be subject to tax in the country in which the taxpayer is now resident.