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steppy-boy
Joined: 22 Jul 2005
Posts: 61
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 Posted: Thu Sep 01, 2005 4:00 pm Post subject: RE: The dreaded "T" word -TAX |
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Just wondering about the tax situation in Oman. Does any one know if ex-pat teachers are liable for income tax once they return to their native countries (US, Canada, Australia)??
Does Oman have a tax system at all, or is it really, just all tax free?
Are English teachers covered under some special exemptions in Oman?
All and any responses much appreciated as I don't want to have to tango with the tax-man upon my return to Australia.
Steppy-boy.  |
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Russell Hadd
Joined: 06 May 2004
Posts: 181
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| Posted: Thu Sep 01, 2005 5:26 pm Post subject: |
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| I can't speak for Australia and it depends on the agreement each country has with each other but generally the last time I returned home (2 years ago) it worked that UK expats were best to declare that they were going to work overseas in order to claim some back from the tax year in which they departed. Then it was important not spend more than 60 days a year in the UK for each year away. On return there was a form to fill in which then allowed the tax collector to decide the tax liability (the Inland Revenue wanted copies of my visa stamps to prove where I'd been). As it stood two years ago any Brit with their head screwed on the right way should have ended up paying nothing in tax to the IR. |
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veiledsentiments
Joined: 20 Feb 2003
Posts: 17644
Location: USA
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| Posted: Thu Sep 01, 2005 8:18 pm Post subject: |
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There are no taxes in Oman. You will have to find out what your responsibilities are to your own countries. I only know the situation for people from the US.
Doesn't the Aust tax authority have a website?
VS |
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rikyo
Joined: 26 Sep 2005
Posts: 7
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| Posted: Wed Sep 28, 2005 6:05 pm Post subject: |
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VS said:
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| Doesn't the Aust tax authority have a website? |
They do, but it's spectacularly unhelpful when dealing with residency issues.
My thoughts - get professional advice, what I"m about to say you should NOT take as an authoritative opinion. But it's the best that I've been able to come up with, being in that situation.
Aus doesn't have a tax agreement with Oman, and Oman doesn't charge income tax; that means that if the ATO considers you as still being an Australian resident even if you're working overseas, they will tax you on what you earned overseas. And they do.
To be considered as a non-resident, you have to basically "prove" to them that you're "residing" overseas. The best way to do that is:
* NOT keep a home in Aus. Owning property might be ok if it's completely let out, but if you have a house that you come back to every summer, they'd look at you suspiciously.
* Fully set up a home in the foreign country (eg not have kids and/or partner still in Aus), and
* stay out for as long as you can. Two years is generally considered safe, but the ATO steadfastly refuses to make a ruling on it. The length of time may help offset if you keep a home, but check your own situation with a professional.
Cut as many links as you can, and preferably be out of the country for more than half the year to not be liable for big taxes on your last earnings in Aus.
Get a good tax agent to deal with correspondence and stuff. It's worth it.
good luck,
-- rikyo |
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