Can you please provide some clarity around “double taxation agreements”? For example if the Singapore rate was 22%, would the Australian tax bill be reduced by the amount of tax paid in Singapore?
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Hidden away in the back of the Australian Budget and unmentioned in the Treasurers speech, was a simple statement confirming that: “The Government will replace the individual tax residency rules with a new framework that is easy to understand, provides certainty and reduces compliance costs for globally mobile individuals and their employers.” The Budget has flagged that these changes will likely come into effect from the 1st July 2022. A new damning “Bright Line” test is proposed that would deem someone a Resident for Australian Tax Purposes if they are in Australia for more than 183 days in a year. This has very serious consequences for many expats during this pandemic. What is more concerning is the proposed ‘Factor Test’ for someone that has spent more than 45 days in Australia. This test is a simple tick box test made up of 4 questions that are so ‘loaded’ that almost any expat would score enough to be considered a resident if they tick 2 of the boxes.