Author Topic: Non-resident working on Australian Contract  (Read 3031 times)

DN

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Non-resident working on Australian Contract
« on: December 17, 2019, 04:23:33 AM »
Hi all,

 

My husband will be relocating to France for work for 3 years; I will be going with him. As a result we will be deemed a non-resident for Australian tax for the financial years that we are away.

My husband will be paid by a French company and he will be on a French contract. Now my Australian employer has potentially offered me the opportunity to work remotely either full time or part time - while we live in France. I am confused as to the tax implications of this. 

Some background
It is an Australian employment contract
I will be working on Australian projects/work
I will be recieving my monthly salary into my Australian bank account
Now I understand Australia and France have a tax treaty (https://treasury.gov.au/tax-treaties/income-tax-treaties), which means I will not be taxed twice...my questions are:

 

(1)  Do I have to declare this income in France or in Australia?

 

(2) If I have to declare it in France, does my employer have to do anything different?

Lukim

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Re: Non-resident working on Australian Contract
« Reply #1 on: December 17, 2019, 06:04:58 PM »
That is a very 21st century digital nomad type question.

You will be paying Australian tax deducted by your Australian employer but you need to get some French tax advice on whether or not France taxes world wide income.  I suspect you will not be taxed in France if full tax is paid in Australia - but you need to get French tax advice.

LonerMatt

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Re: Non-resident working on Australian Contract
« Reply #2 on: December 18, 2019, 01:15:36 AM »
IME you have to declare tax in both countries and, potentially have to pay the difference in France.

Eg if you earn 80k and in Australia that's 10k of taxes, but in France it's 13k you'll have to pay 3k taxes there.

Makes sense since you'll be using public infrastructure, etc.

diften

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Re: Non-resident working on Australian Contract
« Reply #3 on: December 19, 2019, 05:48:45 AM »
Quote
As a result we will be deemed a non-resident for Australian tax for the financial years that we are away

Unless you have a private ruling this may not be the case. You could still be deemed aus tax resident if your 'intention' is to return to Aus.
I have no idea though - get advice from accountant/tax lawyer.