# Are australians paying tax on their saudi arabian earnings back in australia?



## auguston

Just curious as to if Australian workers in Saudi Arabia are paying tax on their Saudi earned money back in Australia? I have a contract working as a Registered Nurse in Saudi for a 12months with extensions if desired.

I have looked it up on the ATO website and was not stoked with what i read under the non-exemption conditions.
"the foreign country does not impose tax on employment or personal services income – for example, Saudi Arabia"

Any assistance/guidance in not having to pay tax back in Australia would be greatly appreciated!


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## mplaydon

*Tax*



auguston said:


> Just curious as to if Australian workers in Saudi Arabia are paying tax on their Saudi earned money back in Australia? I have a contract working as a Registered Nurse in Saudi for a 12months with extensions if desired.
> 
> I have looked it up on the ATO website and was not stoked with what i read under the non-exemption conditions.
> "the foreign country does not impose tax on employment or personal services income – for example, Saudi Arabia"
> 
> Any assistance/guidance in not having to pay tax back in Australia would be greatly appreciated!


Hi there,
I have been in Dubai for over a year. As I understand it, if you are away from Australia for more than 91 days at a time, and have a job elsewhere, ie. not returning for any business, then you are considered an expat and don't pay tax. I think you or your accountant should inform the tax office of that fact. I left it to my accountant to deal with.
There was talk about Aus. changing its laws for expats, but so far I am not aware that this has got anywhere. Hope this helps! Regards...M


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## auguston

mplaydon said:


> Hi there,
> I have been in Dubai for over a year. As I understand it, if you are away from Australia for more than 91 days at a time, and have a job elsewhere, ie. not returning for any business, then you are considered an expat and don't pay tax. I think you or your accountant should inform the tax office of that fact. I left it to my accountant to deal with.
> There was talk about Aus. changing its laws for expats, but so far I am not aware that this has got anywhere. Hope this helps! Regards...M


Awesome! Thats some good news i was wanting to hear! I will be sure to check it over with my accountant as well and get them to sort the fine details, many thanks!


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## jrp928

FWIW now, I spent 9 years in KSA. First 2 were tax free based on being recruited under a Aust Govt approved scheme. Arranged another job there, and after much research ( big accounting firm tried to charge me $$$ for no answer), my local accountant said if I have been non-resident for tax purposes for 2 years, and dont appear on an Oz group certificate, I am home free . Also, Oz accountant can file a Non-Resident return (0 income) without my signature. You just need to file a return for that last part of Oz income tax year before you left the country.
jp


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## BSC69

Just an update to anyone looking in - I have been to the ATO recently and they instructed me as an aussie resident that whatever I earn overseas, unless earned under specific guidelines (charity, or government exempt etc), then as long as I have links to Aus (ie a house) then I will have to pay the same tax in Aus as I would as if I was working there. A great incentive to sell up and move out!!!
So I would suggest you check your contracts and discuss with your accountant or you might get caught out!
Hope this helps


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## naoto

You pay tax only if you earn it in tax free country ( UAE as example). If you are already taxed (like US or UK) on your income this is offsetted so you effectively don't pay taxes.


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## MaidenScotland

When it comes to tax you should let the tax man of your home country know where you are then if you have the option to opt out you can.
I work in Cairo
I am paid from Saudi.. my contract says I am in Saudi.
I am paid into a UK bank account.. I pay tax at source on my savings.
I pay voluntary NI.
I do not pay income tax...


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## MintQ8

I read yesterday that - if you are non-resident for tax purposes (and that's not easy to define - but it amounts to moving out of the country, taking up work elsewhere - renting your own home out etc - ie you basically only return to Australia for a holiday of a few weeks a year) you don't pay tax on the income that you earn outside of the country. You do however have to pay 30% tax on any income within Australia - so that house you're renting out will cost you - but if you have a mortgage it should balance out.

I also read that you can have a 'tax haven' for monies earned overseas when non-resident, but when/if you become resident again - you must pay tax on any interest made on that account - and if you choose to you, you can bring it all back to Australia without being penalised.

Can't post the link - because I haven't made enough posts but google is your friend - it's under the ATO Corporate Content section.

This was last updated in Oct 2011 - and therefore may have changed - so as always - seek the right advice.


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## AussiFinn

as MINQ8 said...
You pay taxes where you are TAX resident, which is calculated based on 6 months /181 days off from oz.

straight from ATO

Residency - what you need to know


Introduction

Within this publication 'foreign resident' is the same as 'non-resident'.

To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and foreign residents are generally taxed only on their Australian-sourced income.

The residency tests we use to work out your residency status for tax purposes are not the same as those used by other Australian agencies for other purposes such as immigration.

Generally, you are an Australian resident for tax purposes if any of the following applies:

you have always lived in Australia
you moved to Australia and live here permanently
you have been in Australia continuously for six months or more, and for most of the time you have been
in the same job, and
living in the same place
you have been in Australia for more than half of the financial year, unless
your usual home is overseas, and
you do not intend to live in Australia.


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## nedian15

*Australians as an expat to pay tax in Australia?*

HI there,

Can i get some contacts from Aussies living and working in KSA for Saudi Aramco?

Look forwrd to hear from someone soon,

Mudassir Khurshid



AussiFinn said:


> as MINQ8 said...
> You pay taxes where you are TAX resident, which is calculated based on 6 months /181 days off from oz.
> 
> straight from ATO
> 
> Residency - what you need to know
> 
> 
> Introduction
> 
> Within this publication 'foreign resident' is the same as 'non-resident'.
> 
> To understand your tax situation, you must first work out whether you are an Australian resident for tax purposes. Australian residents are generally taxed on their worldwide income and foreign residents are generally taxed only on their Australian-sourced income.
> 
> The residency tests we use to work out your residency status for tax purposes are not the same as those used by other Australian agencies for other purposes such as immigration.
> 
> Generally, you are an Australian resident for tax purposes if any of the following applies:
> 
> you have always lived in Australia
> you moved to Australia and live here permanently
> you have been in Australia continuously for six months or more, and for most of the time you have been
> in the same job, and
> living in the same place
> you have been in Australia for more than half of the financial year, unless
> your usual home is overseas, and
> you do not intend to live in Australia.


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## nedian15

BSC69 said:


> Just an update to anyone looking in - I have been to the ATO recently and they instructed me as an aussie resident that whatever I earn overseas, unless earned under specific guidelines (charity, or government exempt etc), then as long as I have links to Aus (ie a house) then I will have to pay the same tax in Aus as I would as if I was working there. A great incentive to sell up and move out!!!
> So I would suggest you check your contracts and discuss with your accountant or you might get caught out!
> Hope this helps


Hi there,
I am going to work for a private firm in Saudi ARabia (Tax free salary). I have owned a property in Melbourne which is on rent since last 3 years. I am out of Australia since Feb 2013 & will continue to be outside Australia for next 2 - 3 years (at least). I am an Australian citizen by the way.

Can someone please confirm / advise if I will / will not have to pay tax back in Australia on what I will earn in Saudi?

Hope to have some good and helpful responses soon,

Regards,
George


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