Personal income tax payable

[Begonia]

Could anyone help please?

When transferring from another country to Australia on a 457 for say two years,

am I correct in my understanding that we will be taxed on our total income earned worldwide for the years in which we are liable for tax in Australia because we are considered permanent residents for the purposes of the Tax Law in Australia

(and then receiving the tax "relief" for tax already paid in the other country (as there is a tax treaty between Australia and in this case Switzerland).

Also I would appreciate suggestions regarding a website with tax related facts (other than the formal website of the tax authority).

Thanks!

[ptlabs]

Could anyone help please?

When transferring from another country to Australia on a 457 for say two years,

am I correct in my understanding that we will be taxed on our total income earned worldwide for the years in which we are liable for tax in Australia because we are considered permanent residents for the purposes of the Tax Law in Australia

(and then receiving the tax "relief" for tax already paid in the other country (as there is a tax treaty between Australia and in this case Switzerland).

Also I would appreciate suggestions regarding a website with tax related facts (other than the formal website of the tax authority).

Thanks!

The ATO's website is quite a useful one, if you can find what you're looking for

http://www.ato.gov.au/print.asp?doc=/content/76536.htm

might be of interest to you for this topic.

There is a difference between being a resident for tax purposes and a permanent resident. A 457 holder is not considered a permanent resident.

Peter

Edited April 6, 2007 by ptlabs

[Begonia]

The ATO's website is quite a useful one, if you can find what you're looking for

http://www.ato.gov.au/print.asp?doc=/content/76536.htm

might be of interest to you for this topic.

There is a difference between being a resident for tax purposes and a permanent resident. A 457 holder is not considered a permanent resident.

Peter

[Begonia]

Peter,

Thanks a lot - this was exactly what we wanted to know.

I understand that for migration purposes we are temporary - just wanted to to make sure that our transfer is not soured by some addditional tax bills -the incremental between the tax rate in CH & AUS, as our current tax rate (we live in a very tax friendly canton) is much lower than AUS.

Thanks also to everyone who contributes the useful info on nearly everything ...... (but the kitchen sink)!

Begonia

[Dedrei]

As far as my tax knowledge goes if you are on 457 visa you are considered by ATO to be a resident for tax purposes. There is few test involved in if you are resident or not and one is if you intention to stay is longer than 6 months, and this is the case with 457 visas.

Have a look at http://www.ato.gov.au/taxprofessionals/con...ntent/64131.htm for an overview of being a resident for tax purposes.

Cheers

D