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USA Income - 189 Visa?


Jacques Leemans

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We are currently in South Africa, busy with SkillSelect application on Developer Programmer for Skilled Independent 189 Visa. ACS approved today YAYAYAY

Im a freelance game developer, with long term clients in USA, Canada, Auz, etc... USA and Canada pay me a fixed "salary" each month.

Does anyone know what the rules are, when it comes to foreign income when immigrating to Auz?

Will I have to find a full time job in Auz?

How does tax work for foreign income?

Is it possible to keep South African bank account? FNB

Thanks

Jacques

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Yes you can keep your RSA bank account.

You would have to declare all of your foreign income in Australia and be taxed on it here, as you will be regarded as tax resident here. Of course, with RSA, Australia has a tax agreement with them, so the taxes that you have paid there you would be able to show on your tax return here. However, if there is a difference in the rates of tax in RSA and AUS, I believe you will have to pay the difference. I have no idea whether AUS has the same agreement with the USA/Canada.

The best would be to speak to a financial expert in Australia to give you the correct information.

If your income is enough for you to live on, there is no law that I know of that says you have to work in Australia.

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@Mara thanks for the response.

Are the taxes the same in all provinces in Auz?

Not sure if the income would be enough, but compared to positions on Seek, it seems to be average.

Anyone know what the average livening costs are for a family of 5 in Perth?

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HI

as the 189 is a PR you are tax resident reporting world wide income to ATO. In terms of the treaty between SA and Oz, you will probably become tax non-resident in SA ie SARS will not want to know about your USA income. Only ATO will need the reporting. Your W8Ben need to be updated in USA.

You can keep your SA bank account but you may no longer avail to the SDA R1m ie no travel allowance funds and now SA credit cards may be used outside SA.

You will pay to SARS tax on all your assets (CGT) and you may need to consider transferring your SA retirement funds (other than RA's) into a Super or your Oz bank account within 6 months of departure from SA

I hope this assist


However, if there is a difference in the rates of tax in RSA and AUS, I believe you will have to pay the difference. I have no idea whether AUS has the same agreement with the USA/Canada.

Mara, SA will not tax USA, Canada as he is no longer tax resident. There is treaties in place between the said countries


@Mara thanks for the response.

Are the taxes the same in all provinces in Auz?

Not sure if the income would be enough, but compared to positions on Seek, it seems to be average.

Anyone know what the average livening costs are for a family of 5 in Perth?

https://www.ato.gov.au/Calculators-and-tools/Comprehensive-tax-calculator/

see above for rates


We are currently in South Africa, busy with SkillSelect application on Developer Programmer for Skilled Independent 189 Visa. ACS approved today YAYAYAY

Im a freelance game developer, with long term clients in USA, Canada, Auz, etc... USA and Canada pay me a fixed "salary" each month.

Does anyone know what the rules are, when it comes to foreign income when immigrating to Auz?

Will I have to find a full time job in Auz?

How does tax work for foreign income?

Is it possible to keep South African bank account? FNB

Thanks

Jacques

https://www.ato.gov.au/General/International-tax-agreements/In-detail/Tax-treaties/Australia-and-Canada-treaty---key-points/

Canada treaty with ATO

https://www.ato.gov.au/tax-professionals/tp/2013-14-income-year/?page=6

Conversion rates


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HI

as the 189 is a PR you are tax resident reporting world wide income to ATO. In terms of the treaty between SA and Oz, you will probably become tax non-resident in SA ie SARS will not want to know about your USA income. Only ATO will need the reporting. Your W8Ben need to be updated in USA.

You can keep your SA bank account but you may no longer avail to the SDA R1m ie no travel allowance funds and now SA credit cards may be used outside SA.

You will pay to SARS tax on all your assets (CGT) and you may need to consider transferring your SA retirement funds (other than RA's) into a Super or your Oz bank account within 6 months of departure from SA

I hope this assist

https://www.ato.gov.au/Calculators-and-tools/Comprehensive-tax-calculator/

see above for rates

https://www.ato.gov.au/General/International-tax-agreements/In-detail/Tax-treaties/Australia-and-Canada-treaty---key-points/

Canada treaty with ATO

https://www.ato.gov.au/tax-professionals/tp/2013-14-income-year/?page=6

Conversion rates

Hugo did you mean to say 'now SA credit cards may be used' or 'no SA credit cards may be used'?

Thanks, Bronwyn

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I thought that he may still be doing work in RSA, and as I do not know how his income is structured, he may have a company, and therefore perhaps have to pay tax there.

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@Hugo2, thanks for the information, will contact you directly, I have some other questions related to tax/income locally and internationally.

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  • 2 weeks later...

To add to the above, just keep in mind that once you are in Australia, the Australian companies may have to deal with payments to you differently depending on whether you register a ABN here and the nature of your services to them. If you are freelancing then also keep in mind that you may be required to register for GST (turnover more than $75k per annum). Since your income is, presumably, based on services rendered, it will probably all be rendered in Australia.

Services to non-residents (USA clients) should attract GST at 0 percent but Australian clients will include 10%. So it may effect your net cash position depending on the nature of your agreement with Australian companies.

Income tax is a Federal tax so the same all over Australia. Something like payroll tax (when you are paying employees) and stamp duty is mostly different state to state.

Let me know if need more information.

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