The ATO is currently assessing the income tax returns of Australians who are working overseas temporarily, and paying foreign taxes, on the basis that a Foreign Income Tax Offset (FITO) cannot be applied to reduce the Medicare levy obligation of an individual taxpayer. This means that where an Australian is, say, working in PNG on as resources project, and incurs foreign tax which is greater than the individual’s Australian tax, the individual receives a credit for (in this case) the PNG tax but cannot obtain a credit against their Australian Medicare levy income tax.
International tax & business
Foreign exchange
Alleviating the double tax burden for Australians working overseas Submission on ATO interpretation of the Medicare Levy and the Foreign Income Tax Offset provisions
Published Date: 8 Sep 2011
Details
- Published By:Icaa,Corporate Tax Association,Taxation Institute Of Australia
- Published On:8 Sep 2011
- Session Name:Alleviating the double tax burden for Australians working overseas Submission on ATO interpretation of the Medicare Levy and the Foreign Income Tax Offset provisions
- Read Time:10+ minutes
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Tags
International tax & business
Foreign exchange
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