| |
 |
|
 |
 |
| |
Australian EXPAT workers now required to pay Australian Income Tax
April 6, 2010
The federal government has announced new administrative rules for expat workers which it claims will ensure they are not subject to double taxation, following last year's crackdown on expat tax concessions.
Today's statement by Assistant Treasurer, Senator Nick Sherry provides additional clarity on specific issues raised by industry regarding the implementation of changes to the taxation of Australian residents employed overseas.
The 2009-10 Budget measure, which was was enacted with the support of the Opposition in June 2009, means that from 1 July 2009, the foreign employment income of most Australians working overseas was no longer exempt from Australian income tax.
It is instead included in the assessable income of the employee and subject to the appropriate marginal tax rates.
The measure also brought overseas based Australian employees into the FBT base for the first time.
"These measures were introduced to ensure Australian workers who earn income overseas do not have an unfair advantage over workers who earn income and pay tax in Australia," the Assistant Treasurer said in a statement.
"Today I am announcing further details on how the implementation of this measure ensures that there is no double taxation of Australians working overseas.
"Under the Budget measure, Australians working overseas will now be able to claim a Foreign Income Tax Offset for the foreign income tax paid on those amounts now included in their assessable income.
"I can confirm today that these taxpayers will not be required to lodge a foreign tax return to demonstrate and claim amounts of foreign tax paid.
"All they will be required to do is to keep their normal pay slips, assuming they identify amounts withheld, and under our self-assessment regime these pay slips will only need to be provided if the Tax Office undertakes an audit.
"This simple process will ensure that compliance costs are minimised, there will be no double taxation and that these Australian employees will get an offset for any foreign tax paid."
|
|
|
 |
| |
 |
|
|
|
|