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DTA between Australia & Singapore - Tax in Australia on Salary in Singapore

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DTA between Australia & Singapore - Tax in Australia on Salary in Singapore

Post by theworm » Sat, 16 Apr 2016 3:14 pm

I just wanted if any Expat (Aussie or AU PR holder salaried in Singapore) can confirm Salary income in Singapore is exempt from Tax in Australia under AU-SG DTA, meaning Expats in Singapore pay Income Tax in respective Country under Dual Tax Agreement (eg. Singapore Salary Tax in Singapore, and Australia Rental income Tax in Australia, and no Singapore salary Tax in Australia)

Below is what I got in IRAS website

************************************************************************************************* ... ional-Tax/

1. Remuneration or other income derived by an individual who is a resident of one of
the Contracting States in respect of personal (including professional) services performed or
exercised in the other Contracting State shall be exempt from tax in the other Contracting
State if -
(a) the recipient is present in the other Contracting State for a period or periods
not exceeding in the aggregate 183 days in the year of income or in the basis
period for the year of assessment as the case may be of that other
Contracting State;
(b) the services are performed or exercised for or on behalf of a person who is a
resident of the first-mentioned Contracting State; and
(c) the remuneration or other income is not deductible in determining the profits
for tax purposes in the other Contracting State of a permanent establishment
in that other Contracting State of that person.

1. This Article shall apply to a person who is a resident of Australia and is also resident
in Singapore.

2. Where such a person is treated for the purposes of this Agreement solely as a
resident of one of the Contracting States he shall be exempt in the other Contracting State
from tax on any income in respect of which he is subject to tax in the first-mentioned
Contracting State if the income is derived -
(a) from sources in the first-mentioned Contracting State; or
(b) from sources outside both Contracting States.

Items of income which are not expressly mentioned in the foregoing Articles of this
Agreement shall be taxable according to the laws of the respective Contracting States
relating to tax.

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Re: DTA between Australia & Singapore - Tax in Australia on Salary in Singapore

Post by PNGMK » Sun, 17 Apr 2016 4:42 pm

Are you non resident for tax purposes in Australia? That, AFAIK, is the main criteria the ATO will use. If you are deemed resident in Australia you must declare all income worldwide and pay it. If you're not tax resident and have no or negligible income in Australia you normally wouldn't declare it.

To recap::

1. Determine residency.
2. Determine each countries tax rules (note - just because there is a DTA doesn't mean both sides honor it or utilize it in the same way).

I think you'll find that unless you have significant none-wage income in Australia you're better off being a wage earner tax resident in Singapore and not Australia. Of course you can't live in Australia in that situation at which point you enter the shadowy world of contracting/offshore entities etc to (possible) save income tax.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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