# Income Tax to ATO for overseas income



## sunny_73 (Jun 20, 2010)

Hi,

Can anyone advise me the situation below? The case is just an example from what I understand ATO tax rules. Please correct me if I am wrong.

_Mr Albert is Resident of Australia.
Mr Albert had the income of $‘X’ in last income year from overseas country.

For his income, the amount equivalent to AUD 10,000.00 is payable to overseas country’s tax office and he has paid for it in this year.

If his overseas income is computed based on Australian Taxation Office rules, he is payable an amount of AUD 25,000.00 to Australian Taxation Office as he is Resident of Australia.

Mr Albert remained ‘0’days in Australia during last income year and he has no income in Australia.

For this situation, will he be paying to ATO the balance amount after offsetting overseas Tax?

(Total Tax Payable to ATO) – (Tax Paid to overseas country) = (Tax Payable to ATO after tax offset from overseas Tax)
AUD 25,000.00 – AUD 10,000.00 = AUD 15,000.00
_


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## sunny_73 (Jun 20, 2010)

Anyone???


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## amaslam (Sep 25, 2008)

This really needs to be addressed to a tax professional. Most people if they reply here would be guessing. You need to take into account residency periods, tax laws of two countries and if there are tax treaties between the two countries. 



sunny_73 said:


> Hi,
> 
> Can anyone advise me the situation below? The case is just an example from what I understand ATO tax rules. Please correct me if I am wrong.
> 
> ...


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## craig_holding (Jan 18, 2010)

i would agree with the above comment, someone who knows about both tax areas would be advantageious.


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