Originally Posted by
drifter3
Hi All,
Could anyone who works for Chinese domestic airline and commutes to live in Australia PM or post their understanding of the tax liability in Oz?
If tax is paid by the Chinese Airline are you exempt from Oz tax under the Aust/Chinese Tax agreement?
Is there a difference for pilots employed to fly internationally or domestically?
Cheers
The following is an excerpt from the Australian Chinese Dual Tax Agreement. My understanding is that you have to be involved in international operations out of China ( not domestic) to apply paragraph 3. For instance if you live in Australia and fly for say China Southern in international operations, then you are OK. But flying for a Chinese domestic carrier in my opinion would not satisfy the exemption in paragraph 3. I'm no tax expert though. If you are yet to embark on the project, best get an ATO tax ruling. That's what quite a few China Southern pilots did.
Article 15
Dependent personal services
1. Subject to the provisions of Articles 16, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by an individual who is a resident of a Contracting State in respect of an employment shall be taxable only in that Contracting State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived from that exercise may be taxed in that other State.
2. Notwithstanding the provisions of paragraph (1), remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
(a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any consecutive period of 12 months;
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of that other State; and
(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in that other State.
3. Notwithstanding the provisions of paragraphs (1) and (2), remuneration derived in respect of an employment exercised aboard a ship or aircraft operated by an enterprise of a Contracting State in international traffic, shall be taxable only in the Contracting State of which the enterprise is a resident.