Tax for Aussies working in Kuwait

nguyennchinh

Member

Member since 22 March 2020

Kuwait City, Al Asimah

nguyennchinh

22 March 2020 14:24:51

nguyennchinh

22 March 2020 14:24:51

Kuwait City, Al Asimah

Hi,

This is my first post. I am an Aussie, considering moving to Kuwait for a 3-4 year assignment. The assignment is with family moving to Kuwait. We plan to keep the house in Perth and visit Perth every year. We'll live in a housing compound provided by the company. My salary is paid into my bank account in Australia during this assignment. My employer is an Australian company. My question for the Aussie expats working / worked in Kuwait under the same conditions as mine is - do you pay tax in Australia during your assignment in Kuwait because you are considered tax residence in Australia ? I read in some other places that because you can't own a property in Kuwait, you still be considered tax resident in Australia. I also want to know if you don't pay tax in Australia, what are the differences in your working assignment and living conditions to mine ?

thanks,
Chinh

Extax Advisory

Member

Member since 21 March 2017

Perth, Western Australia

Extax Advisory

27 March 2020 08:24:41

Extax Advisory

27 March 2020 08:24:41

Perth, Western Australia

Very interesting and topical question Chinh, and a question that can cost you over $200k in the time you are on assignment.

There are many people who have been working in the Middle east in similar arrangements for even up to 6 years without returning to Australia every year, then returned to Australia to get audited by the ATO for being a resident of Australia and not having paid taxes here.

Worse still, they tax income AND benefits, and apply penalties and interest if you have not been declaring along the way.

I would recommend getting advice from an expatriate tax specialist. Like the difference between a GP and a specialist, expect to pay top dollars, but the value you get for the risk more than outweighs anything.

Best of luck!

mudman1976

Member

Member since 21 September 2017

Al Ahmadi

mudman1976

12 April 2020 20:46:00

mudman1976

12 April 2020 20:46:00

Al Ahmadi

HI,

I am an Aussie too.

The only way for not having to pay the taxes in Australia for your overseas income is to rent out your property in Perth, so you will just pay the tax for the money that you make from the rent.
Otherwise, even if your family will come with you to Kuwait, for ATO you will be still a resident for taxation purpose.
Besides, you and your family have to stay away from Down Under at least two years.
And I would ask the company you work for, to pay you through a Kuwaiti bank account.
I reckon that in your situation there is no way to escape from ATO, but you might have to declare only the actual amount of your salary, so all the benefits can be deducted.