Hong Kong & Australia tax treaties = null?
- Thread starter s050399b
- Start date
Hong Kong does not have a tax treaty with Australia. http://www.ato.gov.au/businesses/content.aspx?doc=/content/59547.htm
Taxing will depend on tax residency status and something she will need advice on before she departs to do appropriate tax planning.
Taxing will depend on tax residency status and something she will need advice on before she departs to do appropriate tax planning.
not sure if this is what I am looking for?
http://hongkong.asiaxpat.com/forums/legal-advice/threads/130261/australia-hong-kong-tax/
Quoted:
larrakya, the first year we were here we submitted our tax return for the period we worked and had an Aussie income to the Aust IR. On the tax return we included our HK address and contact details. There after we commenced paying HK tax.
We do submit a tax return in Aust each year as we have investment properties there but only state the income earned on the properties in the return. Since we pay HK tax on our HK earned income we do not state that income in our Aust tax return.
If I was in your position I would definitely get an 'expert' in Australian tax to sort out the tax returns you have submitted whist working and earning in HK. You would probably then have to 'backpay' any taxes due in HK for that same period - I am not sure.
http://hongkong.asiaxpat.com/forums/legal-advice/threads/130261/australia-hong-kong-tax/
Quoted:
larrakya, the first year we were here we submitted our tax return for the period we worked and had an Aussie income to the Aust IR. On the tax return we included our HK address and contact details. There after we commenced paying HK tax.
We do submit a tax return in Aust each year as we have investment properties there but only state the income earned on the properties in the return. Since we pay HK tax on our HK earned income we do not state that income in our Aust tax return.
If I was in your position I would definitely get an 'expert' in Australian tax to sort out the tax returns you have submitted whist working and earning in HK. You would probably then have to 'backpay' any taxes due in HK for that same period - I am not sure.
thanks, I will advise her to mark the departure card as "leaving Australia permanently"
just marking the departure card as "leaving Australia permanently" does not make her a non resident in and of itself. she needs to work through
1. resides test
2. domicile test
3. 183 day test
4. superannuation test
once she passes all of these tests she will then be classified as a non resident for tax purposes in Australia.
The advice given on that forum may have been relevant at the time but changes to Section 23AG changed the whole game for expats.
1. resides test
2. domicile test
3. 183 day test
4. superannuation test
once she passes all of these tests she will then be classified as a non resident for tax purposes in Australia.
The advice given on that forum may have been relevant at the time but changes to Section 23AG changed the whole game for expats.
Cool! Thanks!! Some of the items are sort of related, example, once getting a job in Hong Kong, she will not contribute to the super; and I wouldn't expect her to have a job in Hong Kong and be able to be in Aussie for 183 days........so I guess it's okay!
Thanks guys!
I would be looking at the resides and domicile test as they are primary tests. Good luck.
dont forget "intent" to avoid taxation.
That's so funny. If I moved to HK its obviously bcause I don't want to be a tax resident here hahaha
