Double tax treaty for foreign service

Do you know it is plausible you remain an Australian tax resident during your foreign service but you are also considered a resident of the foreign country? This creates the possibility of being double taxed.

In this situation, it is important to rely on double tax treaty (DTA) to claim relief. Firstly there are tie-breaker rules to deem you to be a resident of only one state for the purposes of the application of the DTA. Secondly, it may be possible that income derived from services performed in the foreign county is only taxable in Australia.


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