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If I buy shares in american companies do I pay tax in america or do I pay tax in america and australia?
terminator said:If I buy shares in american companies do I pay tax in america or do I pay tax in america and australia?
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.
ohhh, that. How easy.123enen said:Income Tax Return
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.
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.
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.
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.
Your residency is based primarily on your intention. If you plan to reside outside of Australia for greater than 2 years, prima facie you have broken Australian tax residence form the date you leave Australia. For Australians leaving Aus, the days test is irrelevant.
Aargh, when you resume your Australian residency, you can return with as much cash as you like tax free - you just need to declare it at customs. Any foreign income still held in foreign aco****s will be subject to tax in Australia and as there will be no tax on this in Dubai, there will be no foreign tax credits available.
Internaitonal taxation rules require specialist advice - not from people posting fallacies on blogs.
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