Do You Earn Income Overseas?

If you’re an Australian resident for tax purposes and you receive income from overseas you generally need to declare it on your Australia tax return.

If you have paid tax in a foreign country you might be able to claim that as a foreign tax credit offset to reduce your Australian tax liability.

This sounds simple doesn’t it?   Problems can arise when it comes to capital gains made overseas as different countries treat capital gains differently and you sometimes will find yourself paying far more tax than you expected.

If you are looking at selling real estate or other assets overseas then why not check with us first on what the tax implications will be and stop yourself from getting a nasty surprise.

People often assume that when they pay capital gains tax overseas they will be able to offset all of that tax and unfortunately that isn’t always the case and often a partial credit is all they are able to claim.