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re:Info from the ATO:...
Info from the ATO:<br>
<br>
Exempt foreign employment income<br>
<br>
Printable version<br>
<br>
If you are an Australian resident for tax purposes, you must pay tax in Australia on income from both Australia and overseas.<br>
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In some circumstances your foreign employment income may be exempt from Australian tax.<br>
Is my foreign employment income exempt from tax?<br>
<br>
You don’t have to pay Australian tax on your foreign income if:<br>
<br>* you are an Australian resident, and<br>* you are engaged in continuous foreign service in a foreign country as an employee for 91 days or more, and<br>* you receive foreign earnings that are not covered by the disqualifying conditions below.<br>
<br>
To find out if your earnings are subject to foreign tax, contact us or the tax authorities in the foreign country where the services are performed.<br>
Disqualifying conditions<br>
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You do have to pay Australian tax on your foreign earnings if you did not pay foreign income tax on your foreign earnings only because:<br>
<br>* of a double tax agreement (DTA) with Australia or a law giving effect to a double tax agreement<br>* the foreign country does not impose tax on employment or personal services income (for example, Saudi Arabia), or<br>* a law or a law of the foreign country dealing with privileges and immunities of diplomats, consuls or people connected with international organisations (such as the United Nations).<br>
<br>
Foreign income tax does not include:<br>
<br>* municipal income tax, and<br>* a state income tax in a federal foreign country.<br>
<br>
Exempt foreign income<br>
<br>
Some foreign income is exempt from being taxed in Australia even if it was not taxed in the foreign country.<br>
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You don’t pay tax on foreign employment income, even if it was not taxed in the foreign country, if:<br>
<br>* your earnings are below the minimum tax threshold in the foreign country<br>* the foreign country has a law that grants income tax exemption to you because you fall into a special identified category (for example, a visiting aid project worker)<br>* the income was exempt because of a memorandum of understanding (MOU)<br>* supplements paid under the Australian Staffing Assistance Scheme paid in Australia for overseas service, or<br>* the foreign country levies a tax on employment income but does not have a system of collection in place. (For example, it may not have a collection system equivalent to our pay as you go withholding system.) <br>
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There are exemptions for certain pay and allowances of members of the Australian Defence Forces when serving overseas. The ADF will inform you of any amounts that are exempt and that do not need to be reported on your return. These are the amounts paid in ‘warlike’ circumstances, where you have a certificate from the Chief of the Defence Forces (CDF) or his delegate.<br>
What is a memorandum of understanding (MOU)?<br>
<br>
Typically, an MOU is signed with a developing country and provides the framework for participation by Australian personnel in infrastructure activities in that foreign country. An MOU usually provides for specific exemption from tax in the relevant country.<br>
<br>
If your foreign earnings are exempt from tax in the foreign country because of an MOU or similar agreement (and other conditions for exemption are met), those earnings are exempt from Australian tax. This is because the MOU does not fall within one of the disqualifying conditions set out above.<br>
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Australia has a large number of MOUs with other countries. To find out more about them and when they apply, go to the Department of Foreign Affairs website at www.dfat.gov.au.<br>
Completing your tax return<br>
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Exempt foreign income will not be included in your assessable income but it will be used to help determine the rate of tax payable on your assessable income.<br>
<br>
You are not entitled to foreign tax credits for exempt foreign employment income.<br>
What to read/do next<br>
<br>* What is foreign service?<br>* What are foreign earnings?<br>* What are double tax agreements?<br>* Exempt foreign employment income - calculation of tax payable |
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发表于 1-12-2004 14:17:47
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