Tax and overseas companies

[Stormin_Norman]

hi all

i was hoping for some general, off the book, opinion only, not to be relied on advice on owning the taxation implications of having a share in a foreign company.

i have been offered a 60% share in a newly formed company based in hongkong.

how will dividends paid to me by this company be treated when i return them to australia?

has anyone had any experience of a similar situation?

 

[MS+Tradesim]

You are required to declare all income from overseas sources. Depending on any tax you pay overseas and any tax treaty between that company and Australia will determine if or how much tax you will pay here.

Hong Kong has a very favourable tax system so you will probably need to pay here.

Ps. Depending on your personal situation you may prefer to give up residency of Australia for tax purposes. That would require you to live elsewhere for over 50% of the financial year and you would not pay any tax in Australia on your overseas earnings (however you would then pay alien rates on anything earned here). I hear Hong Kong is an exciting city.

 

[GreatPig]

Take a look at the Foreign Income Return Form Guide.

GP