I'm current an Ozzy citizen, looking at joining MM2H, I will continue working in Australia by commuting approx. every 2 weeks and spending 65% of my free time in Malaysia. My wife and children will reside in Malaysia full time. Am I able to remain an Oz resident for tax purposes, or once joining the MM2H scheme, do I fall into the higher rate tax bracket as deemed,'non-resident'
Joining MM2H, can I remain Oz resident for Tax Purposes? Help
jofan
24 November 2014 04:35:38
2
Gravitas
24 November 2014 09:45:03
9040
Malaysia does not tax income earned off shore or pensions paid from another country.
jofan
25 November 2014 02:32:20
2
I understand, but once I am issued with an MM2H visa, this then changes my Australian residency status to "non-resident" which in turn makes a huge difference to the amount of tax I will pay. My employer is Australian, and I will continue to be paid from Australia also. Just wondering if anyone else has been through this, or knows a good offshore tax adviser who may be able to help?
Gravitas
25 November 2014 02:48:40
9040
You need to check this the Oz end. Most countries operate the 182 day rule i.e. you are resident if you are in the country for 6 months of the year. Perhaps you will need to adjust your time in Australia accordingly. There is nothing to be done at the Malaysian end.
stumpy
25 November 2014 04:30:06
17618
jofan wrote:I'm current an Ozzy citizen, looking at joining MM2H, I will continue working in Australia by commuting approx. every 2 weeks and spending 65% of my free time in Malaysia. My wife and children will reside in Malaysia full time. Am I able to remain an Oz resident for tax purposes, or once joining the MM2H scheme, do I fall into the higher rate tax bracket as deemed,'non-resident'
Until 2012 I worked overseas, have family in Laos. Came back to work in Oz.
All my overseas earnings were paid into my Oz bank account. My accountant put in a nil return each tax year. Never had to pay anything.
When I resumed work in Oz I went on to the normal tax rate system even though I was a non resident and had an overseas address as my place of residence.
I would discuss it with your accountant.
b4bmm
08 August 2015 06:28:39
51
Who is liable. Australian residents are subject to Australian tax on worldwide income. Nonresidents are subject to Australian tax on Australian-source income only. An exemption from Australian tax on certain income is available for individuals who qualify as a temporary resident. Temporary residents are generally exempt from Australian tax on foreign-source income (including foreign investment income but not foreign employment income) and capital gains realized on assets that are not taxable Australian property (TAP). For details regarding TAP, see Capital gains and losses.
As discussed below, the Australian tax treatment differs for residents, nonresidents and temporary residents.
In general, a resident is defined as a person who resides in Australia according to the ordinary meaning of the word, and includes a person who meets either one of the following conditions:
He or she is domiciled in Australia, unless the tax authority is satisfied that the person's permanent place of abode is outside Australia.
He or she is actually present in Australia continuously or intermittently for more than half of the tax year, unless the tax authority is satisfied that the person's usual place of abode is outside Australia and that the person does not intend to reside in Australia.
The residence tests can be met relatively easily. For example, a person who is in Australia for employment purposes for as little as six months may be considered resident in Australia for tax purposes.
A nonresident is a person who does not satisfy any of the above tests.
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