Working remotely while staying in Australia (PR)

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Working remotely while staying in Australia (PR)


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Old 18th October 2020, 05:16 AM
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Default Working remotely while staying in Australia (PR)

Hi all,
I have a pr (189) and planning to move to australia in january 2021.
I have a offer from early stage startup company in india, which is exciting and it will be big in a few years.
At the same time , I don't want to miss on my pr.(which is expiring in march 2021)

So here are my doubts

1. Is there a way I can migrate to australia and still work for this startup . Here the company will pay tax to indian government. Is it okay if I pay the difference in tax ( tax according to Australia minus tax according to india)

If that's possible, it all boils down to the point that whether the indian employer will be okay with remote working or not.

2. And, is the rental lease good enough to prove my substantial ties with Australia

Thanks,
-Venkat

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Old 18th October 2020, 08:05 AM
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Originally Posted by venkataratnamteki View Post
Hi all,
I have a pr (189) and planning to move to australia in january 2021.
I have a offer from early stage startup company in india, which is exciting and it will be big in a few years.
At the same time , I don't want to miss on my pr.(which is expiring in march 2021)

So here are my doubts

1. Is there a way I can migrate to australia and still work for this startup . Here the company will pay tax to indian government. Is it okay if I pay the difference in tax ( tax according to Australia minus tax according to india)

If that's possible, it all boils down to the point that whether the indian employer will be okay with remote working or not.

2. And, is the rental lease good enough to prove my substantial ties with Australia

Thanks,
-Venkat

Sent from my SM-M307F using Tapatalk
1. All your Indian income will be added to Australian income if any and taxed in Australia as per rules.
You will get credit for the tax paid in india and any additional tax only will be payable by you
Remote working allowed or not is between you and the company

2. If you are migrating before March 2021, where is the question of proving substantial ties
You can enter even on the last day when your travel rights expire in March 2021 with no question asked for your absence

Cheers

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Old 18th October 2020, 06:11 PM
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Quote:
Originally Posted by venkataratnamteki View Post
Hi all,
I have a pr (189) and planning to move to australia in january 2021.
I have a offer from early stage startup company in india, which is exciting and it will be big in a few years.
At the same time , I don't want to miss on my pr.(which is expiring in march 2021)

So here are my doubts

1. Is there a way I can migrate to australia and still work for this startup . Here the company will pay tax to indian government. Is it okay if I pay the difference in tax ( tax according to Australia minus tax according to india)

If that's possible, it all boils down to the point that whether the indian employer will be okay with remote working or not.

2. And, is the rental lease good enough to prove my substantial ties with Australia

Thanks,
-Venkat

Sent from my SM-M307F using Tapatalk
for 2nd point, rental doesn't consider as substantial ties in any manner. however, how long u could work remotely, as even after RRV expiry you need to apply another one to travel in/out of Aus.... not sure how long you plan to do this sort of going around the things.. I would suggest you better decide on your priority and choose the best one suits you..

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Old 18th October 2020, 10:19 PM
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Is it okay if I pay the difference in tax ( tax according to Australia minus tax according to india)
That isn't quite the way it works.

I am not familiar with the details of the India - Australia tax treaty so the comment below is based on generalities about how most tax treaties work, but I suspect that unless the treaty varies from most, then my comment will stand.

If you perform the work in Australia, then it will be considered Australian sourced and Australia will have the primary right to tax the income.

As a tax resident of Australia, you would be required to pay full Australian income tax on your global income.

To reduce double taxation you would be eligible to receive a refund of any Indian tax that was withheld on Australian sourced income when you filed your India tax return.

If you received interest on bank accounts etc, the opposite would apply. That income would be considered India sourced.. you would pay income tax to India, and Australia would provide you with a foreign tax offset for taxes paid to India.

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Old 18th October 2020, 10:41 PM
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Users Flag! Originally from india. Users Flag! Expat in australia.
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Quote:
Originally Posted by venkataratnamteki View Post
Hi all,
I have a pr (189) and planning to move to australia in january 2021.
I have a offer from early stage startup company in india, which is exciting and it will be big in a few years.
At the same time , I don't want to miss on my pr.(which is expiring in march 2021)

So here are my doubts

1. Is there a way I can migrate to australia and still work for this startup . Here the company will pay tax to indian government. Is it okay if I pay the difference in tax ( tax according to Australia minus tax according to india)

If that's possible, it all boils down to the point that whether the indian employer will be okay with remote working or not.

2. And, is the rental lease good enough to prove my substantial ties with Australia

Thanks,
-Venkat

Sent from my SM-M307F using Tapatalk
In addition to responses you have received, you haven't mentioned if you will be paid in AUD in Australia, deposited in Australian Bank or paid in INR in India, deposited in Indian Bank?

If former, it is very easy and taxed in Australia only..

If latter, then it gets complex because company is liable to deduct taxes at source (TDS) and I'm not sure if there is a provision for you to show taxes paid in Australia against the same income and get back refund from Indian Taxman. Might be worth talking to an accountant in India to clarify Indian laws around double taxation. But yes, in latter case, you have to pay full Australian Tax.

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