Help need on TAX related questions

[smilingsenthil]

Hi There,

 

We are currently living in Singapore and would like to migrate to a Autralian City at the earliest. I would like to know the answers for the below questions and all of them pertains to tax in Australia.

 

1. Firstly, how much I can bring in from my current country (singapore) to Australia ? Is there any limit ? Can I bring all my savings there ? If I do, should I need to pay tax for that money in Australia when I migrate there ? I'm planning to bring around AUD 100,000 as I want to buy a house in Sydney at the earliest. Should I need to declare this money while bringing in and also will it be taxable ?

 

2. Secondly, I'm a part time trader and a software enginner at the moment. However, I would like to explore the possibility of being a full time FOREX trader in Sydney. When I do so, what are the tax implications for my capital gains ? Will it be treated as individual income and falls under same norms or is there any special tax structure for captial gains. Would I be able to avoid paying more tax by setting up my own company and show the expenses for the company etc ? Please help on this as this would help me make my plans.

 

3. Thirdly, I have some earnings (like rentals, investments) in Singapore. After I migrate to Sydney, if there is any income from Singapore and if I want to transfer that to Australia , should I pay tax for that ? Please clarify.

 

4. Lastly, inorder to get our PR extended or to get Aussie Citizenship will the Aussie Governement look for any minimal earnings (like one must earn more than AUD 100,000 a year) or the extension of the PR has got nothing to do with one's earnings ?

 

Would be great to get these questions clarified.

[Guest The Pom Queen]

Can't help with your tax questions as I'm useless with my own.

In regards to bringing money in to Oz there is no limit, however, amounts over $10,000 have to be declared. I would also provide proof how you have got the money in case they ask any questions when you arrive.

[jim bean]

My opinion not an expert

1 Transfer as much as you like, ; think the 100,000 limit is cash in a suitcase.

There is no tax to pay in Au on savings you have when you arrive

 

2 I would guess it would be taxed as income= Accountant would advise you when you arrive

 

3 If its the same as UK you will pay tax in Singapore, show the income and tax you have paid on your Au tax return . Even if you dont bring the money to Au you will still be taxed on it, if you live here.

 

4 Doesnt matter how much you earn if you are a permanent resident .

[smilingsenthil]

Thanks Jim...points 1 and 4 are useful. I think for 2 and 3 I may probably need the help of a financial consultant.

[thombatt]

Hi There,

 

We are currently living in Singapore and would like to migrate to a Autralian City at the earliest. I would like to know the answers for the below questions and all of them pertains to tax in Australia.

 

1. Firstly, how much I can bring in from my current country (singapore) to Australia ? Is there any limit ? Can I bring all my savings there ? If I do, should I need to pay tax for that money in Australia when I migrate there ? I'm planning to bring around AUD 100,000 as I want to buy a house in Sydney at the earliest. Should I need to declare this money while bringing in and also will it be taxable ?

 

How much you can take out of Singapore will depend on Singapore's capital/forex restrictions. In Australia there is no limit on how much capital you can bring in. Capital inflows are not taxed.

 

2. Secondly, I'm a part time trader and a software enginner at the moment. However, I would like to explore the possibility of being a full time FOREX trader in Sydney. When I do so, what are the tax implications for my capital gains ? Will it be treated as individual income and falls under same norms or is there any special tax structure for captial gains. Would I be able to avoid paying more tax by setting up my own company and show the expenses for the company etc ? Please help on this as this

would help me make my plans.

As a general rule of thumb you have to have owned something for at least a year for it to be considered capital, rather than revenue in nature, and even then if the items fits into your normal revenue operations, it will not be considered capital. If you are a forex trader your forex operations will be revenue and will be taxed at your marginal rate. You will be allowed to deduct the costs to generate these revenues. Companies are taxed at a flat rate, which is higher than the lowest individual rate, but lower than the highest individual rate. there can be complications when it comes to extracting profits, either as dividends or salary.For instance there are very strict rules on loans to shareholders.

 

3. Thirdly, I have some earnings (like rentals, investments) in Singapore. After I migrate to Sydney, if there is any income from Singapore and if I want to transfer that to Australia , should I pay tax for that ? Please clarify.

 

If you have PR you will be considered an Australian resident for tax purposes. You are taxed on your worldwide income. You will be able to deduct from your Australian tax paid any taxes paid offshore.

 

4. Lastly, in order to get our PR extended or to get Aussie Citizenship will the Aussie Governement look for any minimal earnings (like one must earn more than AUD 100,000 a year) or the extension of the PR has got nothing to do with one's earnings ?

Nothing to do with it. There are a number of requirements to become an Australian citizen, but wealth is not one of them.

 

Would be great to get these questions clarified

These are very much 2 sentence responses to some complex questions and are certainly not adequate or complete advice. They are designed to give a helicopter view of the issues.