Tax Residency Clarity for Overseas Workers

A recent AAT case sheds light on tax residency determinations for individuals relocating overseas. The case involved an Australian citizen who worked in Dubai for five years, maintaining less than 183 days in Australia annually. Despite this, the ATO deemed him an Australian tax resident, denying him a refund of approximately $525,000 in PAYG withholding tax. Key factors influencing the decision included his employment by an Australian entity and extensive ties to Australia, such as his wife's residency, vehicle registrations, insurance policies, and employment contract provisions.

To read more about this case in detail, see this article on SMSFAdviser: https://www.smsfadviser.com/news/23434-tribunal-case-gives-clarity-on-tax-residency

If you are unsure about your tax residency while working overseas, don’t risk ATO trouble, contact us for a consultation.