[autdot]

Hello -

I am looking for clarification on how Australian tax/employment laws would impact a foreign company that has a single employee living in Australia. I am a Software Engineer working for an American company and I will be relocating to Australia to be with my husband. I would like to remain at this company, on their payroll. I will not be doing any business in Australia, I will not provide services or sell goods in Australia. As a Software Engineer at this company I will continue working on a product sold in the USA and other authorized countries. The product is not sold in Australia. I will likely spend at least 4-6 weeks in the USA per year, on holiday or for work.

Would the company have tax liabilities in Australia in this scenario? I am not speaking of taxation on my own income (that is a whole other mess), only on the American Corporation.

Many thanks to anyone who is familiar with Australian tax/employment law and can help.

Cheers,

Autumn

 

[chiku2006]

I did my research a few months ago on the same subject and found out that unless your employee has ABN number they are not liable to pay any taxes here, however, since you will be a resident of Australia, you will be liable to pay your taxes here than in USA.

I hope this makes sense. Your employer is an American entity and not Aussie and they are not operating out of Australia so they are not liable for any taxes here.


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[baku_raju]

Hi Chiku2006 - thanks for the suggestion
I am in a similar condition where I need to work for a US employer while I am staying in AUS on a PR. I am currently in India and planing a move next month. So can my employer directly send the salary to my AUS bank account. Or do i have to maintain company to company relationship by setting a local company in Australia and I will be the employee of this company. Any suggestions will be helpful?

 

[chiku2006]

Hi Chiku2006 - thanks for the suggestion
I am in a similar condition where I need to work for a US employer while I am staying in AUS on a PR. I am currently in India and planing a move next month. So can my employer directly send the salary to my AUS bank account. Or do i have to maintain company to company relationship by setting a local company in Australia and I will be the employee of this company. Any suggestions will be helpful?

You can earn income from any part of the world but you need to declare it in your country of residence and pay taxes that's all. You don't need to open any company in Australia to earn salaried income. You will have to speak with an accountant to find out how will you pay your taxes as employers deduct tax from each salary and deposit it with the tax department. If you are a resident of Australia and earning salary from other country even then you need to file your return and pay taxes. All major countries have double tax treaty with Australia which means if your employer deduct any tax in India then you can get an offset for that in Australia but that's a little difficult task to manage, that's why I am advising you to seek help from an accountant here in Australia and they will let you know the entire process.


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[baku_raju]

Thanks for the information.

 

[verynewuser]

updated.....

 

[verynewuser]

Hi Chiku2006 - thanks for the suggestion
I am in a similar condition where I need to work for a US employer while I am staying in AUS on a PR. I am currently in India and planing a move next month. So can my employer directly send the salary to my AUS bank account. Or do i have to maintain company to company relationship by setting a local company in Australia and I will be the employee of this company. Any suggestions will be helpful?

Yes.
And you must need TFN (Tax File Number). You can apply for a TFN online but for that you have to be physically present in Australia.
If you don't have a TFN, I suspect 47% income tax will be deducted on your salary until you get a TFN.

 

[baku_raju]

Thanks for the answer. I have checked with an accountant and he has advised pretty much the same thing.I will be a private consultant of the company rather than an employee as they dont have any presence in Australia. As a private consultant I will be paying taxes locally in Australia and I will be receiving my salary in AUD.