Pay Tax Where? Singapore, Australia, Thailand?!

[awmac]

OK, here's a tricky one for anyone game enough to go for it:

1. I am an Australian Resident

2. I am employed and paid by a Singaporean Company

3. I work in Thailand on a rotational roster but live in Australia

4. I worked for 64 days in Singapore last year

5. I worked for 154 days in Thailand last year

6. The rest of the year I was in Australia on leave.

Which country's tax do you think I would be liable for? All have DTAs with each other.

If you can answer that one, how about next year when I won't be in Singapore at all?!

See? I told you it was tricky! I would be very grateful for any help...thanks to everyone.

awmac

[ballbreaker]

Since your residence is Australia you might want to check their tax code. It should provide all the info you need.

[think_too_mut]

OK, here's a tricky one for anyone game enough to go for it:

1. I am an Australian Resident

2. I am employed and paid by a Singaporean Company

3. I work in Thailand on a rotational roster but live in Australia

4. I worked for 64 days in Singapore last year

5. I worked for 154 days in Thailand last year

6. The rest of the year I was in Australia on leave.

Which country's tax do you think I would be liable for? All have DTAs with each other.

If you can answer that one, how about next year when I won't be in Singapore at all?!

See? I told you it was tricky! I would be very grateful for any help...thanks to everyone.

awmac

I am Australian, live and work in Japan, my tax goes to Japan, no tax to Oz.

"Non-resident" is what I have. See if you qualify for that, the rule is all Oz laws related.

Explore the relevant Oz site (http://ato.gov.au/)

[thedivezone]

Do it like i do : I pay neither here nor there, nor anywhere ...

[fred2007]

Do it like i do : I pay neither here nor there, nor anywhere ...

you must have the same accountant as I have

[IMA_FARANG]

Do it like i do : I pay neither here nor there, nor anywhere ...

Good luck to you...but I have seen what can happen. Not to me, but my friend, XXXX, did that for many years, He lived in BKK and always bragged about "never" paying any taxes in his life. They would never find him, he said. Well, he bragged to the wrong person...and that person turned him in to the U.S. Internal Revenue Service (they have a program which gives cash rewards for turning people like him in). He owed at least 10 years back taxes according to the U.S. government. He ran away, but lost everything he owned to the tax people. I haven't seen him in nearly 20 years now, he lost his house and all his savings (not to mention his family) in Thailand. Also all his U.S. bank accounts were frozen to pay the tax bill.

For that reason...pay your taxes...and if you don't....for god's sake keep quiet about it.

[billd766]

Do it like i do : I pay neither here nor there, nor anywhere ...

Good luck to you...but I have seen what can happen. Not to me, but my friend, XXXX, did that for many years, He lived in BKK and always bragged about "never" paying any taxes in his life. They would never find him, he said. Well, he bragged to the wrong person...and that person turned him in to the U.S. Internal Revenue Service (they have a program which gives cash rewards for turning people like him in). He owed at least 10 years back taxes according to the U.S. government. He ran away, but lost everything he owned to the tax people. I haven't seen him in nearly 20 years now, he lost his house and all his savings (not to mention his family) in Thailand. Also all his U.S. bank accounts were frozen to pay the tax bill.

For that reason...pay your taxes...and if you don't....for god's sake keep quiet about it.

I have been living offshore in Thailand since 2001 and been a contractor since before then.

I used to pay tax in Thailand while working here and some contract agencies are based in 1 country, I work in another and am payed from a 3 rd country. Sometimes I have paid with holding tax and sometimes not but as I am a UK citizen I only pay tax on my UK income, which in my case is my pensions.

Now I am working as a permanent employee in New Zealand I pay NZ tax rates but as usual I get no social security or health benefits.

It is all swings and roundabouts but a lot of the time you are up.

The downside is that I have paid USD $ 3,500 with holding tax on a job in Pakistan which has not been paid to the tax authorities there after 3 years and I am still fighting to get it back from the agency (hopefully with interest).

[Naam]

Do it like i do : I pay neither here nor there, nor anywhere ...

you must have the same accountant as I have

i don't pay income tax. that's why i don't need an accountant. no tax = looking at beautiful Thailand from a very interesting perspective

p.s. american friends, you have my sympathy. perhaps the next incarnation provides you with another citizenship?

[neverdie]

awmac,

The answer is easy. You need to make an application with the Australian Tax Office for a private ruling. Its easy enough to do, however it is important to include all the facts with your application.

There is alot more to being considered a non resident for taxation purposes than that of simply being outside Australia for a few years.

Australia presently has 'Tax Treaties' with in excess of 40 countries, both Thailand and Singapore have these treaties with Australia, they are supose to eliminate the chance of double taxation, as well as ensuring that you are paying tax to the correct country.

There are 4 mains tests the ATO will use to determine whether or not you are a resident for taxation purposes; 1: Resides test, 2. Domicile test, 3. 183 day test & 4. Superannuation test.

An application for private ruling is easy enough for you to do by yourself if you have a basic understanding of taxation law & can present yourself well on paper, else wise you just need to get your accountant back in Australia to do it.

The beauty of getting one done, is then you are covered & won't have to worry about if you are doing the correct thing or not, you get a ruling number & paper that relates just to you. You only need to worry if your circumstances change, at which time you just do a new ruling.

I just completed one, it was very complex & it took the ATO most of the year to sort it out, they failed to meet many of the time deadlines that they set for themselves, but in the end I believe I obtained a fair result....ohhh and they had to give me a s#itload of money back that they had incorrectly taxed me on previously....but thats another story.

Anyway, don't worry about it, just get a ruling made and forget about it. Good luck!

[awmac]

WOW! Thanks for all the info. I may well go with the Private Ruling option however I didn't really want to draw attention to myself in that way and was hoping that I could somehow wangle it to pay Singapore tax (being much less of course!).

Thanks again

awmac

[RAZZELL]

Do it like i do : I pay neither here nor there, nor anywhere ...

you must have the same accountant as I have

Fantastic, until you want to get a Visa, PR, social or welfare benefits somewhere

RAZZ

[junkofdavid2]

Assuming it would be legal to pay in ANY of them, simply choose the one with the lowest tax and see how it can be legally implemented.

End of story.

(I hope!)

[cocopops]

WOW! Thanks for all the info. I may well go with the Private Ruling option however I didn't really want to draw attention to myself in that way and was hoping that I could somehow wangle it to pay Singapore tax (being much less of course!).

Thanks again

awmac

Under no circumstances should you speak to the ATO personally. Invest some time to find an aggressive accountant in Australia who will help you with the pricks. Ideally you need to convince them that you are not an Australian resident for taxation purposes.

Edited January 6, 2009 by cocopops