avinokurov Posted February 27, 2015 Share Posted February 27, 2015 Hello Everyone! I am new here and not sure if something similar has been discussed here before; if so – please forgive me. It's a unique situation for me. I am American traveling to Australia in two (2) weeks on Working Holiday Visa (462). My current employer, (in the US) asked if I will be interested to do some part-time work remotely while I am in Australia. So, I thought why not? Extra income not going to hurt – right?! However, after talking to payroll department and few other folks I heard different things such as: I will be double taxed; by Australian Government and US Government. I will be taxed in the country I am physically working first (*Australia) and then in the USA. Because I am on WHV (462) I am limited to work six (6) months for any company – even if working remotely. Australia and the USA have a tax treaty so that you will not have to pay double taxation if you are earning income in both countries. Which one is right? Does anyone have any experience working remotely for US firms while on WHV? What are the tax implications for this sort of arrangement? As far as I know, I can work only up to six (6) months for each employer in Australia. How can WHV (462) limit me to work for US company? Secondly, is it true I will be taxed by both countries? I understand If I work for Australian company, in Australia which is I am planning to do; I will be paying taxes to Australia. Now, if I am permanent resident in Australia and working for US company that’s different and will pay taxes probably to both countries… but, in my situation I am just traveler, and does Australia care where money come from to my bank account? My address, bank account and everything else remains the same. I get paid by direct deposit to American Bank and then I’ll just transfer money to my Australian Bank. I plan to work 5 – 10 hours a week. Now, If I get taxed by both countries, then maybe it’s not worth it? Any suggestions would greatly appreciate. Thank you in advance! Link to comment Share on other sites More sharing options...
Bungo Posted February 27, 2015 Share Posted February 27, 2015 Australia and the USA do have a double taxation agreement (I just googled to see if they did) and these things are designed to stop you being double taxed. So I am pretty confident that you won't be, but you will have to find out what you need to do on the USA side when you come to filing. Being a traveler and being paid into a US bank account doesn't change your responsibility to pay Australian taxes. Would they find out, probably not, but it is tax evasion and you need to decide if you want to risk it. Link to comment Share on other sites More sharing options...
avinokurov Posted February 27, 2015 Author Share Posted February 27, 2015 Australia and the USA do have a double taxation agreement (I just googled to see if they did) and these things are designed to stop you being double taxed. So I am pretty confident that you won't be, but you will have to find out what you need to do on the USA side when you come to filing. Being a traveler and being paid into a US bank account doesn't change your responsibility to pay Australian taxes. Would they find out, probably not, but it is tax evasion and you need to decide if you want to risk it. Thanks for the reply. I don’t want to put myself nor company at risk. Definitely want to do the right thing – so I don’t get in trouble. Now, just make me think if it'sworth it? If I’ll be working only 5 – 10 hours a week then maybe it’s not worth going through this hassle. At the same time, extra income would be a huge help! Ugh, can’t it be more simpler! J Link to comment Share on other sites More sharing options...
Bungo Posted February 27, 2015 Share Posted February 27, 2015 Thanks for the reply. I don’t want to put myself nor company at risk. Definitely want to do the right thing – so I don’t get in trouble. Now, just make me think if it'sworth it? If I’ll be working only 5 – 10 hours a week then maybe it’s not worth going through this hassle. At the same time, extra income would be a huge help! Ugh, can’t it be more simpler! J Well as a US citizen, you need to file taxes anyway don't you? So it doesn't seem like that much more hassle to me. Link to comment Share on other sites More sharing options...
avinokurov Posted February 27, 2015 Author Share Posted February 27, 2015 Well as a US citizen, you need to file taxes anyway don't you? So it doesn't seem like that much more hassle to me. That is correct. And, I am going to file taxes as always. I just don’t understand why payroll department kept telling me that I will be double tax. Basically, they are saying because I am in different country they need to set up in payroll system so I get taxed. But, I am already taxed in US. And, once I get job in Australia I will get taxed in Australia as well. Maybe they think I am considered as “expatriate” but I shouldn’t right? Since, I am just traveling for short period of time. Link to comment Share on other sites More sharing options...
scattley Posted February 27, 2015 Share Posted February 27, 2015 2 and 3 are correct. It doesn't matter what company you are working for....on a WHV you can only work for them for a six month calendar period on that visa. The same thing happened with my brother who was wanting to continue Pt work with his UK company...it ended up being much simpler to just not bother...he didn't want to risk his chance of getting another Australian visa by being banned for three years. It this wasn't the case you could argue why would I need to have a working visa at all...just come on a tourist visa...it's an American company I am working for remotely....why should immigration be involved? Link to comment Share on other sites More sharing options...
avinokurov Posted February 27, 2015 Author Share Posted February 27, 2015 2 and 3 are correct. It doesn't matter what company you are working for....on a WHV you can only work for them for a six month calendar period on that visa. The same thing happened with my brother who was wanting to continue Pt work with his UK company...it ended up being much simpler to just not bother...he didn't want to risk his chance of getting another Australian visa by being banned for three years. It this wasn't the case you could argue why would I need to have a working visa at all...just come on a tourist visa...it's an American company I am working for remotely....why should immigration be involved? Thank you! Well, working remotely for my current employer that's in US wasn’t my original plan… my plan was to get WHV travel to Australia and work there.. just to get different experience, learn new things, etc... But, my employer really wants to keep me on payroll. I am specialist in few areas and that’s why he asked if I can work part-time hours remotely. Just to help them out. How about if they change my status from “employee” to “contractor” ? Would that make any difference? I would hate to violate laws and/or get banned from Australia. I guess, it’s better just to quit my job in US and work in Australia. To stay out of trouble. Link to comment Share on other sites More sharing options...
blossom Posted February 27, 2015 Share Posted February 27, 2015 I think you pay the taxes in the country you are living in. How that exactly works I'm not sure. The six month restriction does still apply though. Link to comment Share on other sites More sharing options...
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