# How much tax do I pay?



## terminator (13 October 2006)

If I buy shares in american companies do I pay tax in america or do I pay tax  in america and australia?


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## RobinHood (13 October 2006)

just Australia


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## son of baglimit (13 October 2006)

while i dont know how it works, i did own NWS when it was domiciled is USA, and the puny divs did have US withholding tax - food for thort


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## Duckman#72 (14 October 2006)

terminator said:
			
		

> If I buy shares in american companies do I pay tax in america or do I pay tax  in america and australia?




There are tax agreement with most other countries ensuring that you are not taxed twice. If you are an Australian citizen then the dividends will be assessable in Australia - however they may be subject to a withholding tax. You need to put the income in your ITR as Passive Foreign Income.


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## It's Snake Pliskin (14 October 2006)

Duckman#72 said:
			
		

> There are tax agreement with most other countries ensuring that you are not taxed twice. If you are an Australian citizen then the dividends will be assessable in Australia - however they may be subject to a withholding tax. You need to put the income in your ITR as Passive Foreign Income.




Excuse my ignorance but what is an ITR?


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## 123enen (14 October 2006)

Income Tax Return


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## It's Snake Pliskin (14 October 2006)

123enen said:
			
		

> Income Tax Return



ohhh, that. How easy.


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## Wysiwyg (1 April 2008)

My little tax whinge. 

After all these years i only today realised that Goods and Services Tax is rounded up.In what i noticed was 1/2 a cent.No big deal to me, i could care less, but how many transactions take place every day that pulls in the 1/2 cent.
If 2 million 1/2 cent GST rounding up events take place per day then that is $10,000 into the government coffers per day free tax.

I don`t know how many GST round ups take place every day but if the number of transactions is 10 million then some serious extra revenue is being pulled. On the other hand if the GST charges were rounded down then someone else would have to pay for it or be made null and void.

Every single cent is taxed multiple times in it`s travels and any forward financial progress taxed even greater.(CGT) I know why i feel powerless.I`m being regulated.


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## Aargh! (30 May 2008)

Hi all,

So it turns out I'm moving to Dubai for work. I intend to still trade stocks with my Commsec account. What happens with my tax? Will I still be classed as an aussie resident? Will I be charged tax at the marginal rate governed by my capital gain/loss?

Thanks in advance.


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## Pommiegranite (30 May 2008)

Aargh! said:


> Hi all,
> 
> So it turns out I'm moving to Dubai for work. I intend to still trade stocks with my Commsec account. What happens with my tax? Will I still be classed as an aussie resident? Will I be charged tax at the marginal rate governed by my capital gain/loss?
> 
> Thanks in advance.




Double check, but I believe that if you spend over half of the year working in another country, then you are classed as a resident of that country for tax purposes.


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## pb112 (31 May 2008)

Aargh! said:


> Hi all,
> 
> So it turns out I'm moving to Dubai for work. I intend to still trade stocks with my Commsec account. What happens with my tax? Will I still be classed as an aussie resident? Will I be charged tax at the marginal rate governed by my capital gain/loss?
> 
> Thanks in advance.




It all depends on the Domicile test. If you have a permanent place of abode (home) in Australia and you are posted to Dubai for say 3 yrs, you will remain a resident of Australia for tax purposes. If however you set up an abode in Dubai and sell your home here in Australia the domicile test will fail and you will not be considered an Australian resident after 183 days away.


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## Aargh! (31 May 2008)

pb112 said:


> It all depends on the Domicile test. If you have a permanent place of abode (home) in Australia and you are posted to Dubai for say 3 yrs, you will remain a resident of Australia for tax purposes. If however you set up an abode in Dubai and sell your home here in Australia the domicile test will fail and you will not be considered an Australian resident after 183 days away.




So I don't have a house here in Aus. I will be in Dubai for a couple of years at least. So what will the tax implications be for my Australian share trading be? The marginal rate from what they earn me?

Also how can I bring money back into Australia that I make overseas without getting taxed?


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## michael25 (15 June 2008)

Aargh! said:


> So I don't have a house here in Aus. I will be in Dubai for a couple of years at least. So what will the tax implications be for my Australian share trading be? The marginal rate from what they earn me?
> 
> Also how can I bring money back into Australia that I make overseas without getting taxed?





as long as you live 182 days overseas in the current tax year you will NOT be classified as an australian resident for TAX PURPOSES regardless of whether you hold a australian passport or not. Once you pass that 182 day threshold, the income you earn IN australian will be taxed at the TOP marginal tax rate (45%). However, if in the current tax year you do NOT pass the 182 day threshold, then any income you earn overseas (that is..sourced overseas) will be subject to 15% withholding tax and you will not be taxed on that foreign income again (provided that australia has a double tax agreement with that country from which you sourced your foreign income)...but you still need to declare it to the ATO.


Feel free to ask me all your tax questions..im a tax accountant...pm me if u need help


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## Shann08 (12 September 2008)

michael25 said:


> as long as you live 182 days overseas in the current tax year you will NOT be classified as an australian resident for TAX PURPOSES regardless of whether you hold a australian passport or not. Once you pass that 182 day threshold, the income you earn IN australian will be taxed at the TOP marginal tax rate (45%). However, if in the current tax year you do NOT pass the 182 day threshold, then any income you earn overseas (that is..sourced overseas) will be subject to 15% withholding tax and you will not be taxed on that foreign income again (provided that australia has a double tax agreement with that country from which you sourced your foreign income)...but you still need to declare it to the ATO.
> 
> Michael is incorrect. Your tax status in Australia is based on residency and source. All income that is Australian taxable property, i.e. Ausrtalian real property, shares in a private company, etc will always remain taxable in Australia - regardless of residency.
> 
> ...


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## hooikk (12 September 2008)

I seem to have lost the post I made, so here it is again:

I'm interested in how taxation in treated in respects to some overseas investments/transactions I am planning to make:

1) I'm planning to open an account with Interactive Brokers as I would like to get started in trading in the futures & forex markets (still learning). From what I gather, it looks like a US-based entity. How is tax treated in this case? e.g. CGT, interest income/expenses etc.

2) My father has purchased a plot of land on my behalf in Malaysia (in my name). In the event of a profitable sale in the far future, am I going to be  taxed on this? It sounds pretty unfair and illogical if I had to fork out money to the ATO that had nothing to do with my income streams in Australia.

3) I'm planning to invest a fair sum in my dad's company (mining operation) that is based in Malaysia. I'll be getting x% return after a 2 year period. How would this be taxed? 

If I've got an Australian company/trust structure already set up, is it valid for international transactions (e.g investing in properties in NZ, Malaysia etc) Or would I need a local holding entity in the respective countries


Haven't had a change to speak with my accountant, but thought I'd get as much info as I can before paying a couple hundred bucks for formal advice.


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