By: hekkea
18/06/2008
1:48 pm Yahoo! Profile:
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| In Saudi there's no tax on income. So as a resident for tax purposes your foreign income is not exempt from Australian tax, no matter how long you're away. As explained in earlier posts, if you are a non resdident, then your foreign income is not considered. So you would want to make sure you suit the criteria for non-resident, which, i believe you are. There are tests you can do on the ATO website to see your residency status according to their criteria. |
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By: ecchi.gaijin
14/03/2008
5:48 pm Yahoo! Profile:
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| Jocelyn, the main difference is that non residents are not required to declare foreign income on their australian tax return, residents are. If you remain a residnet and depending on the status of Saudi Arabia, any income earned there during the 4 years may still be exempt from income tax (but required to be declared for other calculation on your tax return). You don't really get a choice in the matter as the ATO will ultimately decide for you (should you get audited) based on the facts. From examples I have seen recently the ATO gives more consideration to how long you are away for. So based on the facts you quoted I would expect them to consider you a non resident. |
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By: jaws_id
12/03/2008
12:36 pm Yahoo! Profile:
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There are lots of reasons to become a non resident for tax purposes but whether you are able to do so will depend on your specific circumstances. The fact that you intend to be away for 4 years is some indication that you are non resident but other helpful facts would include:
1. whether you are employed by an australian company
2. do you maintain a permanent address in australia
3. do you maintain australian health insurance, bank accounts etc etc
The fact that you are away for 4 years would indicate to me that you may get the expatriate bug and stay away longer. By becoming a non resident you then dont have to worry about any of your foreign income ever being subject to australian tax prior to your return to australia.
The big advantage of being a non resident is that you can invest in countries where income is not subject to any tax e.g. Singapore thus maximizing your investment returns.
Goodluck
PS: You should make sure your health insurance (evacuation and hospitalization) is adequate as you may lose your normal australian coverage if you become a non resident |
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By: catsmad9
12/03/2008
12:15 pm Yahoo! Profile:
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I believe you can also purchase shares as a non resident and then when you return, they are deemed to have been acquired at the price they are the date of return(x) . So no capital gain on the value of the share while you have been away, provided you sell them at return price(x). Or it is considered to be your purchase price for tax purposes ie. capital gains
Better check that with an accountant. Tax laws can also change. DYOR |
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By: nav_lal
10/03/2008
5:26 pm Yahoo! Profile:
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Depends on teh tax rates to be charged.
I suggest that you compare the tax rates between countries and see which tax's you less. The disadvantage of being a non-resident is that you won't qualify for the 6000 threshold, i.e. any income you earn will be taxed (normally 1st 6000 doesn't attract tax). this shouldn't be a problem for you given you have no Australian income.
Note: It will be hard for you to satisfy the residency requirments under the Income Tax Legislations in your situation anyway. |
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By: jocelyn_salvador
8/03/2008
2:17 pm Yahoo! Profile:
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Hi guys,
I have just been offered a post in Saudi Arabia and intend going for perhaps 4 years. I have no assets in Australia, no property, only minimal superannuation, and I will generate no income in Australia during that period, so is there any advantage/disadvantage in me becoming a non-resident for taxation purposes?
This whole issue confuses me.
Cheers
Joy. |
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