# Australian Taxes if working in Saudi Arabia



## Norm (Mar 15, 2008)

Can anyone tell me if I have to pay tax in Australia? I have permanent residence in Australia but before I got the permanent residence I had a contract via a UK firm to work in Saudi Arabia. I am paid in pounds sterling under the Uk system and get a UK payslip. My wife, who is Australian stays at home in Australia while I am away working. Certainly until end of June 2009 I did not have to pay tax. I believe changes have been made to the tax legislation from 1st July 2009. My contract will only end sometime in the first quarter of 2010 at which time I will go home and hopefully have a job back in Australia. I am originally from the UK.


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## mr.india (Jul 28, 2009)

Norm said:


> Can anyone tell me if I have to pay tax in Australia? I have permanent residence in Australia but before I got the permanent residence I had a contract via a UK firm to work in Saudi Arabia. I am paid in pounds sterling under the Uk system and get a UK payslip. My wife, who is Australian stays at home in Australia while I am away working. Certainly until end of June 2009 I did not have to pay tax. I believe changes have been made to the tax legislation from 1st July 2009. My contract will only end sometime in the first quarter of 2010 at which time I will go home and hopefully have a job back in Australia. I am originally from the UK.


Dear Norm,

Are you still paying your taxes in UK? As I understand from your post that you are getting ur payslips in UK in pound sterling. Income in Saudi Arabia is tax free if your payslip is on saudi company. 

I suggest you to consult tax consultant as they would be in better position to answer ( Tax Treaty between the UK and Australia operates to avoid double taxation of the same income). 

I personally don't see the requirement either to pay tax again in Australia if you have paid already in UK or your income was taxfree. 

Regards,


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## kaz101 (Nov 29, 2007)

I agree that you need specialist advice on this one since there are so many different factors involved. You mentioned that you are on a contract but it sounds like you mean that you are an employee for a fixed amount of time - is that correct? 

I'm from the UK and now a PR resident in Australia. I sometimes work through my Pty Ltd for a company in the UK but I'm not an employee so my money (GBP) gets transferred to Australia and I pay tax on it here. However we have property in the UK and we pay on that income in the UK  

So it's never an easy answer and I would get specialist advice to make sure that you are paying the correct amount in the right countries. 

Let us know how you get on.

Regards,
Karen


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## Norm (Mar 15, 2008)

I would normally pay tax through the UK Inland Revenue but as I have been out of the UK for more than 320 days per year the inland revenue now classes me as non-resident for tax purposes and thus I do not pay UK tax on earnings outside of the the UK. 

I still have to pay National Insurance contributions however. As far as Australia is concerned I have only been in Australia since end of January for 30days to date, and only 10 days since 1st July 2009. My leave cycle from the job has not allowed me any more time. 

My money although paid in Pounds sterling is sent directly by my company to my bank in Australia at my request. I am an employee for a fixed amount of time. 

I have no UK generated income in the UK or assets, having said that it seems I have to, via an accountant submit a tax form every year. Hopefully I can get the tax people to stop insisting I submit, since it is costing me £300 a time, and of course there is no income.

Does any one know of a good specialist that I could use in Tasmania?

Thanks all for the replies most appreciated.

Norm





kaz101 said:


> I agree that you need specialist advice on this one since there are so many different factors involved. You mentioned that you are on a contract but it sounds like you mean that you are an employee for a fixed amount of time - is that correct?
> 
> I'm from the UK and now a PR resident in Australia. I sometimes work through my Pty Ltd for a company in the UK but I'm not an employee so my money (GBP) gets transferred to Australia and I pay tax on it here. However we have property in the UK and we pay on that income in the UK
> 
> ...


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## kaz101 (Nov 29, 2007)

Norm said:


> I have no UK generated income in the UK or assets, having said that it seems I have to, via an accountant submit a tax form every year. Hopefully I can get the tax people to stop insisting I submit, since it is costing me £300 a time, and of course there is no income.


My accountant charges me a lot less than that in the UK! Admittedly I run the reports from Quicken and give her the details for her to fill in.


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