Taxation for commuters?
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Taxation for commuters?
Sorry to drag this one up again but I've been trawling through the various threads on this subject and am still trying to get my head around it.
Say I am resident for tax purposes, ie house, wife & kids in Aus. But, I'm employed for an airline o/s. The airline is based in a country that has a dual taxation agreement with Aus. I manage to get maybe 8 (non-leave) days off per month in a block and I spend that time in Aus.
Do I:
1. Pay tax overseas only?
2. Pay tax overseas, claim it back and then pay tax to ATO, or
3. Pay tax overseas and then pay the difference between o/s and Aus tax to the ATO?
What happens if I am exempt from paying tax in the airline's base country because I spend most of my time out of that country on trips? Do I then pay full tax to ATO?
I'm sure there are a lot of really smart guys out there who do this and know how it works. Any advice hugely appreciated.
Say I am resident for tax purposes, ie house, wife & kids in Aus. But, I'm employed for an airline o/s. The airline is based in a country that has a dual taxation agreement with Aus. I manage to get maybe 8 (non-leave) days off per month in a block and I spend that time in Aus.
Do I:
1. Pay tax overseas only?
2. Pay tax overseas, claim it back and then pay tax to ATO, or
3. Pay tax overseas and then pay the difference between o/s and Aus tax to the ATO?
What happens if I am exempt from paying tax in the airline's base country because I spend most of my time out of that country on trips? Do I then pay full tax to ATO?
I'm sure there are a lot of really smart guys out there who do this and know how it works. Any advice hugely appreciated.
Man Bilong Balus long PNG
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Finalgearup; Suggest you consult a taxation specialist on this one. You definitely can't afford to get it wrong with the tax dept. just now. I heard a whisper that the ATO was going to look very closely at Pilots returns this year.
If you can find a tax agent whom is also a lawyer, even better.
Hope this helps.
If you can find a tax agent whom is also a lawyer, even better.
Hope this helps.
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I am definitely not a tax lawyer and please dont take this as gospel. I think point 3 is the one.
1. If you spend more than 90 consecutive days out of AUS then the income earnt in that 90+ day period is exempt from tax. The remainder of income for the year is subject to AUS tax. Coupled to this 90+ days consecutive service there is a credit system whereby approx one tenth of the days out of AUS are allowed to be spent in AUS to qualify for continuous service, if the continuous service period is broken then start counting again!!!
2. If you spend less than 61 days in AUS in a financial year then the income is exempt from tax.
Both of the previous are based on the premise that you have payed the applicable income tax in the country where the income was earned.
The total tax payable in AUS is based on the total income for the year (or the period concerned) less a foreign income tax credit for tax paid in the foreign country.
I think thats it in a nut shell!!
Anyway, as the previous suggests find a good, if there is such a thing, tax lawyer. If by chance you do can you let me know who it is.
1. If you spend more than 90 consecutive days out of AUS then the income earnt in that 90+ day period is exempt from tax. The remainder of income for the year is subject to AUS tax. Coupled to this 90+ days consecutive service there is a credit system whereby approx one tenth of the days out of AUS are allowed to be spent in AUS to qualify for continuous service, if the continuous service period is broken then start counting again!!!
2. If you spend less than 61 days in AUS in a financial year then the income is exempt from tax.
Both of the previous are based on the premise that you have payed the applicable income tax in the country where the income was earned.
The total tax payable in AUS is based on the total income for the year (or the period concerned) less a foreign income tax credit for tax paid in the foreign country.
I think thats it in a nut shell!!
Anyway, as the previous suggests find a good, if there is such a thing, tax lawyer. If by chance you do can you let me know who it is.
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As an aside to this topic, in the situation described above and if you pay Australian tax, I'm told you can offset the cost of firm flights from home to your base (eg Sydney-Geneva) against your tax bill. So if you are commuting once a month thats a helluva saving. Can anybody confirm or deny?
Soup Dragon,
From what I remember in my previous life prior to committing aviation, costs incurred in travel from home to your place of work are not tax deductible. This includes commuting costs. If though you are based in Australia and you normally report to an Australian airport for work but your employer has asked you to report to another airport, whether it be in Aus or O/S and you have to pay for it, then this would be tax deductible. I would suggest though, anyone wanting to go down this avenue first consult a registered tax accountant before putting this advise into practice as the reg's may have changed and I have been out of the seen for 13 years.
From what I remember in my previous life prior to committing aviation, costs incurred in travel from home to your place of work are not tax deductible. This includes commuting costs. If though you are based in Australia and you normally report to an Australian airport for work but your employer has asked you to report to another airport, whether it be in Aus or O/S and you have to pay for it, then this would be tax deductible. I would suggest though, anyone wanting to go down this avenue first consult a registered tax accountant before putting this advise into practice as the reg's may have changed and I have been out of the seen for 13 years.
