We are looking to work for an off shore company and reap the benifits and savings in doing so... any comments or thoughts?
Grace
Grace
Employed off shore?
- Thread starter Will & Grace
- Start date
Just make sure you get paid offshore !!!!
Then, locally your income is zilch.....
Then, locally your income is zilch.....
Hiya
Is the HQ of the co in Nigeria
ta
rolf
Is the HQ of the co in Nigeria
ta
rolf
Geoff,
Yes, but only if income is declared.......
Yes, but only if income is declared.......
Indeed dangerous.
I get paid from offshore and although I could choose not to declare the income, I do declare it and pay Aussie tax. I do not have to pay GST naturally.
When I get paid into my US bank account, the companies I'm dealing with have to use my company ABN number. I have no idea if the computer systems and paperwork between the countries are good enough to deduce the fact that I do have os funds or not, but as a company thats moving along nicely it's something I'd rather not try.
The upside is that I get to leave it in the US until the exchange rate suits me or buy US goods. In this case a container load of cheap cars and boats...makes for better buying and the price of classic cars and boats doesn't dimish with the dollar
Hmmm...classic Italian sports cars...droooool..
I get paid from offshore and although I could choose not to declare the income, I do declare it and pay Aussie tax. I do not have to pay GST naturally.
When I get paid into my US bank account, the companies I'm dealing with have to use my company ABN number. I have no idea if the computer systems and paperwork between the countries are good enough to deduce the fact that I do have os funds or not, but as a company thats moving along nicely it's something I'd rather not try.
The upside is that I get to leave it in the US until the exchange rate suits me or buy US goods. In this case a container load of cheap cars and boats...makes for better buying and the price of classic cars and boats doesn't dimish with the dollar
Hmmm...classic Italian sports cars...droooool..
I'm no expert but have been doing this for 4 years and am in my second overseas location. In both countries I have no Australian tax liability as a result of my income in those foreign countries - I am a resident in those countries for tax purposes and pay tax there.
I believe it comes down to whether you pay tax on the income in the country in which you earn, and then whether Australia has an agreement with that country to not double tax you.
cheers
Ralph
I believe it comes down to whether you pay tax on the income in the country in which you earn, and then whether Australia has an agreement with that country to not double tax you.
cheers
Ralph
There's a big difference between living/working offshore and being employed by an offshore company and paid offshore. If you are Australian resident for tax purposes you are taxed on worldwide income. Double taxation agreements exist with many countries, the rules are complicated, talk to your accountant before you do anything.
Be careful not declaring income, I had a colleague in a previous job who under-declared his taxes for many years and could no longer fly home (to Holland) as the tax office wanted to talk to him about his tax liabilities. After so many years he owed the government more than he had in savings and many times his annual salary. He was living in Spain at the time and was initially flying home through Paris until he got stopped at Charles De Gaulle, apparently when they scanned his passport it flashed up a note to please detain him. The head of security let him pass but told him not to come through CdG in the future. He was then flying through Zurich and his next obstacle was going to be when his passport came due for renewal. He could drive home to Holland from Spain, no border control by land within the EU, but then ran the risk of being picked up if his ID was checked for any other reason. I am no longer in touch with him so don't know whether he made it to retirement, in Spain, without getting caught. Personally, even if he got away with it, I don't need that sort of hassle in my life and would not be happy if I couldn't return to Australia!
Be careful not declaring income, I had a colleague in a previous job who under-declared his taxes for many years and could no longer fly home (to Holland) as the tax office wanted to talk to him about his tax liabilities. After so many years he owed the government more than he had in savings and many times his annual salary. He was living in Spain at the time and was initially flying home through Paris until he got stopped at Charles De Gaulle, apparently when they scanned his passport it flashed up a note to please detain him. The head of security let him pass but told him not to come through CdG in the future. He was then flying through Zurich and his next obstacle was going to be when his passport came due for renewal. He could drive home to Holland from Spain, no border control by land within the EU, but then ran the risk of being picked up if his ID was checked for any other reason. I am no longer in touch with him so don't know whether he made it to retirement, in Spain, without getting caught. Personally, even if he got away with it, I don't need that sort of hassle in my life and would not be happy if I couldn't return to Australia!
HI W & G,
Sorry for late post BUT have been there and done that.
If you do go OS to work, then make sure you have your accountant advise the ATO that you will classed as NON-RESIDENT for taxation purposes. There are some stipulations i.e. you generally have to be away with no immediate intention to return. You also MUST be out of the country a minimum of 183 days per year in the Australian tax year you are declaring NON-RESIDENT Status.
You may have to show that tax was paid in another country which has the reciprocal tax deal with the Australian Govt. if yopu are channelling cash back to Australia though that seems a bit strange when you are deriving your income OS and living OS hence the Non Resident status. If you are to be working Rotation in the Offshore industry (ie Oil/Gas) then the ATO has some concessions.
If you are shipping larger chunks of cash (Bank transaction), you will be monitored. You also MUST declare cash over $10K if hand carrying. You will also be slugged a hefty fee to deposit cash in your own bank so TT is best way to get it into your own bank or carry smaller chunks that you will spend.
I once got stung over $100 to deposit MY cash into MY account.
Hope this helps.
SW
Sorry for late post BUT have been there and done that.
If you do go OS to work, then make sure you have your accountant advise the ATO that you will classed as NON-RESIDENT for taxation purposes. There are some stipulations i.e. you generally have to be away with no immediate intention to return. You also MUST be out of the country a minimum of 183 days per year in the Australian tax year you are declaring NON-RESIDENT Status.
You may have to show that tax was paid in another country which has the reciprocal tax deal with the Australian Govt. if yopu are channelling cash back to Australia though that seems a bit strange when you are deriving your income OS and living OS hence the Non Resident status. If you are to be working Rotation in the Offshore industry (ie Oil/Gas) then the ATO has some concessions.
If you are shipping larger chunks of cash (Bank transaction), you will be monitored. You also MUST declare cash over $10K if hand carrying. You will also be slugged a hefty fee to deposit cash in your own bank so TT is best way to get it into your own bank or carry smaller chunks that you will spend.
I once got stung over $100 to deposit MY cash into MY account.
Hope this helps.
SW
AUSTRAC monitors transactions with a value of $10,000 or more from memory.
