Australian residents are generally taxed on their worldwide income from all sources. Temporary residents of Australia and foreign residents are generally taxed only on their Australian-sourced income, such as money they earn working in Australia. You may be treated as a temporary resident for income tax purposes if you are an Australian resident for tax purposes and you also hold a temporary migration visa like the 188 visa. Most of your foreign income is not taxed in Australia except income earned from employment or services performed overseas while you are a temporary resident. This income is subject to income tax and would still be declared in your return for the year in which you earned it. If you paid tax in a foreign country, you may be entitled to claim a foreign income tax offset when you lodge and declare that income in your Australian tax return.
What kinds of taxes are involved when operating a business in Australia as a 188 visa holder?
I want to apply for a 188 visa and operate a restaurant in Sydney. I would like to know what types of taxes apply to my business and to me as a business owner. Am I subject to the tax rates as local business owners? If my country of origin has some type of tax treaty with Australia, will I be able to enjoy it?
This is an accountancy question and for details related to your unique situation, it is recommended that you speak to a qualified tax accountant regarding your business. We highly recommend business visa holders to work with qualified accountants in order to ensure they plan their business structure well and to fulfill their 888 permanent residence visa eligibility criteria. In general, you will be subject to same business tax rates as local business owners. Double tax treaties, if relevant to your country, will apply depending on the type of business entity you set up in Australia, whether your Australian business is part of the business in your home country.
The tax regime for you and your business will be the same as any other resident. If you operate a business through a company, it will be at company rates and you will pay individual rates.