Question about Freelancing to overseas and taxes.

[Hayden_Z]

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Hi.

I’m new to this site and had a question about being a freelancer.

I’m an artist in the video game industry. I work for a studio that is based out of England but I work from home. I get paid US$2000 once a month, so not exactly a huge amount. Do I even have to pay taxes?

Does anyone know how what the procedure is when it comes to taxes for someone in this position? I rang the ATO and the person I spoke to had no idea and said they would ring me back. They never did, I rang them again and they said they’d ring back. Again they never did.

Please excuse my ignorance. I draw and do art stuff all day long. I’ve no idea about anything when it comes to money and this sort of thing.

Thanks.

[Past-Member]

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According to the ATO you have to declare it.
I really urge you to contact the ATO and speak to someone who understands your question. Or ask your accountant about it.

Foreign income you receive as an Australian resident may be taxed in both Australia and the country from which you received it. If you have paid foreign tax in another country on foreign income you received, you may be entitled to an Australian foreign income tax offset.

For more information about foreign income tax offset rules, refer to Guide to foreign income tax offset rules.
End of further information
You must also declare foreign income that is exempt from Australian tax as we may take it into account to work out the amount of tax you have to pay on your assessable income.
For information about exempt foreign employment income you should not include in your tax return, refer to Exempt foreign employment income.

http://www.ato.gov.au/Business/International-tax–for-businesses/In-detail/Foreign-income-of-Australian-residents/Foreign-income-of-Australian-residents—what-you-need-to-know/

Exempt foreign employment income

If you are anAustralian resident for tax purposes, you pay tax in Australia on your employment income, such as salary, wages, commissions, bonuses and allowances earned from foreign service unless it is exempt from Australian tax. From 1 July 2009, there is a limited exemption for foreign employment income from particular types of foreign service.

http://www.ato.gov.au/General/International-tax/In-detail/Foreign-employment-income-of-Australian-residents/Exempt-foreign-employment-income/

[kathiemt]

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Get an accountant. If you’re working from home you could be considered running a business. Important you are set up properly so no nasty surprises come along later.

[CindyK]

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Hi,

As you can see the rules and legislation around income are quite complex. Much of the application of tax law depends on your specific circumstances.

As already mentioned, to do the right thing and not get stung later – make the effort and spend the few dollars to see a qualified accountant. Ring around to find ones who deal with overseas income on a regular basis.

[Author]

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