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What are Australia’s tax treatments on foreign income of immigration investors?

I want to participate in Australia’s investment immigration programs. I understand that there are many options and the options have different requirements. For me, requirements on age, business experience and English proficiency are not a problem. My biggest concern is the tax treatment on my income obtained outside Australia. I was told that different types of visas have different tax treatments. Could you please explain? Which one can minimize my tax liability?

  • Quentin Kuo Law + Immigration
    April 28, 2019

    Well, this is a tax problem mixed with immigration. Be very careful what you are told and the accountability of those lay persons or professionals. I can see the response you received is very vague. You should engage a tax professional who is also a migration agent (or a migration lawyer, even better) for advice. I can only give you the migration lawyer take generally, but not as a tax lawyer or tax professional I hope this begins to illustrate the complexity of your question. Now, my basic understanding of tax is whether you are a tax resident., i.e., if you domicile in Australia or live more than 183 days in Australia. If you are, all income globally should be reportable. Where, whether or what your taxable income will be assessed to be may be different depending on the nature of your income. Then, your visa comes into play to apply the tax rate based on current tax rulings. As you can see, my answer may be very vague, and I would rely on written advice from responsible tax professionals.

  • Julian-Armitage Migration Lawyers (JAM)
    April 10, 2019

    That is a very complex matter, as it all depends on the offshore earning entity.

  • Australian Visa Options
    April 11, 2019

    As an Australian permanent resident, you will be taxed on your worldwide income. This means you must declare all income you receive from foreign sources in your Australian income tax return. Foreign income you receive as an Australian permanent resident may be taxed in both Australia and the country from which you received it. A significant investor visa may be the best option to minimize tax on your foreign income, as it is possible to get a two-year extension twice for a total of eight years on the provisional visa. This gives the applicant time to settle his or her overseas affairs, continue operating offshore businesses, and avoid paying tax on overseas income by taking advantage of the temporary resident rules which exclude foreign sourced income and gains from Australian tax. Contact a registered migration agent who works closely with a financial adviser for more information, as this is a complex area of tax law.