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Earning money over the web - need global tax advise HELP!!

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Robinsonmlr
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Earning money over the web - need global tax advise HELP!!

Postby Robinsonmlr » Thu, 10 Mar 2011 11:13 am

Hi There,

I have a few questions i need help with:
1) I am moving to Australia on a 457 long term business visa for my day job as a travel manager. This is all fine
2) I am also an alternative therapist and want to set up my practice and work over the internet doing therapies, with this i could be working with cients from anywhere in the world...

I need advice, how would it work with tax would i have to pay tax in AU, tax is high in AU is there a way around this, ie should i open a company in Singapore or anywhere else?

Also I will be working in Au on a a work visa for a corporate job and wanting to earn other money at the weekend or through passive income on websites, is this legal...

Who do i approach and what questions do i need to ask, I kind of know what i need to know but i dont if that makes sense . Can any one assist me??

Thanks

M

beppi
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Postby beppi » Thu, 10 Mar 2011 1:05 pm

May I question the wisdom of asking for information about Australian tax, work permit and company setup on a Singapore forum?
You may get a reply about setting up a Singapore company if you are more precise with telling us what you really want to do here (e.g. what kind of legal entity).

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Postby Strong Eagle » Thu, 10 Mar 2011 2:05 pm

In general, and under most reciprocal tax treaties, you pay taxes in the country in which you reside.

For Singapore, if you have entities that generate income outside of Singapore and none of that money is received in Singapore, then it is not taxable in Singapore, operating under the assumption that you are paying tax in the country in which the money was earned.

Robinsonmlr
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Postby Robinsonmlr » Thu, 10 Mar 2011 2:51 pm

So let me use this as an example, I set up a website to offer a service over the web. I market and work over the phone with Singapore people who pay me in SGD to my SGD bank accounts
1) In order to do this I assume i have to open my business in Singapore?
2) If i live in Aus and my business is in Singapore if I earn money in Aus under this business name but they pay me on paypal which then goes to me SG bank account where do I pay tax.


Alternatively I open my business in Au, but then I pay more tax?

Am I missing something.

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Postby beppi » Thu, 10 Mar 2011 3:32 pm

What SE wrote above is true for personal income tax: In general you pay tax where you live/work, regardless of where and how the money is received. Thus in your example (and assuming Aussie tax law is like most others) you'd have to pay personal income tax in Australia, because you live and work there.
Corporate taxes are a different matter, but no matter how or where the company profits are taxed: If the company pays money out to you, you have to pay personal income tax on it where you live.
For registering a Singapore business, you also need at least one locally resident manager, so you can't do it alone.
Your constructs might enable doing things under the radar, but that is illegal and you shouldn't discuss it on a public forum.

beppi
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Postby beppi » Thu, 10 Mar 2011 3:39 pm

Robinsonmlr wrote:I set up a website to offer a service over the web. I market and work over the phone with Singapore people who pay me in SGD to my SGD bank accounts
1) In order to do this I assume i have to open my business in Singapore?

No.
You are delivering your product (service) to customers abroad, but your business is still conducted in Australia.
You do not need a foreign-registered business to do that.

Robinsonmlr wrote:2) If i live in Aus and my business is in Singapore if I earn money in Aus under this business name but they pay me on paypal which then goes to me SG bank account where do I pay tax.

As written above: The business would have to tax its profits in Singapore, but the portion of it that is paid out to you is your personal income, taxed where you live.
Seriously: Get a good tax consultant before you do such things - the expense is worth it!

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Re: Earning money over the web - need global tax advise HELP

Postby beppi » Thu, 10 Mar 2011 3:45 pm

Robinsonmlr wrote:I kind of know what i need to know but i dont if that makes sense .


No, that does not make sense at all.
Think before you write - and think even more before you do anything else!


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