Live in Singapore - income from Aus

[baba]

Hi,
Can someone with knowledge of the subject offer some help please.

Currently we run a small business in Australia. My wife is Singaporean and we are considering moving the family back to Singapore permanently. We intend to maintain our business contacts in Australia, and start up the same business in Singapore. In fact, for the foreseeable future - all our income will be derived from Australian sources.

Will our income still be liable for Australian SUPER HIGH taxes? I have tried reading through the Double Tax Agreements and Non-resident foreign tax ruling on the ato website, but I openly admit I do not understand even 10% of it. And of the amount I do understand - I don't trust that I have understood it correctly..!

I have read a few postings on this site of people concerned about property revenue - this I believe, falls into a separate catergory. Therefore, if anyone is in a similar situation - ie they are residing in Singapore and earning business income from Australia - we'd love to hear from you.

[jpatokal]

This is a question for Australia, not Singapore -- find a qualified tax advisor over there. The rule of thumb, though, is that you pay taxes where you're based, and so does your company. If eg. your Australian business pays you via dividends, then your co. will pay corporate tax in Oz, but you'd pay income tax in Singapore -- which for dividends is 0%.

[baba]

Thankyou jpatokal,
Yes, we have engaged an accountant in Australia to research this properly. However, the way services/consultants are going today, you need to be informed yourself - otherwise people may take you in any direction and you are none the wiser.

We thought, possibly if someone is in the same situation, they could give a practical example - as opposed to simply reading the theory (which is often open to debate) even at government levels.

[mrdodge]

Thankyou jpatokal,
Yes, we have engaged an accountant in Australia to research this properly. However, the way services/consultants are going today, you need to be informed yourself - otherwise people may take you in any direction and you are none the wiser.

We thought, possibly if someone is in the same situation, they could give a practical example - as opposed to simply reading the theory (which is often open to debate) even at government levels.

Pretty wise approach. In our case, we have some income from australia and some from SG. That which is earned on Oz pays taxes in Oz and likewise for SG. There are a variety of complexities, particularly with investments but we find it fairly straightfoward (nb: NOT easy) to manage. No doubt you can be very aggressive in arranging your affairs, but unless you can afford the advice and the management overhead, its probably not worth it, if you are doing it on your own.

Cheers

[baba]

Ok, I thought it might be helpful to share the info that I have been told from the Aust Tax Office and the preliminary thoughts of the accountant.
This info is EXcluding dividends, interest returns or rental property incomes - it is specifically to do with Singapore based businesses doing business in Australia and earning Aus dollars from that. From what I have been told, the situation as mentioned above is taxed in Singapore only. No Aus tax and No Aus tax return.