3 Months in Australia as UK Ltd Company

#1

Hi Guys,

A quick question as my accountant as queried something with me.

I have a UK limited company and I’m visiting Australia for 3 months to visit friends, plus enjoy a little sunshine. I was looking at hiring a desk for a month or so while there and was wondering if this would affect my visa and wether I’d need to declare my earnings while there?

As I’ll still be working for my own UK company with no money coming from Australian sources and I won’t be selling goods or services to Australian companies I would have thought that the normal holiday visa would be fine. I’d also assume I wouldn’t have to declare anything with the Australian tax authorities as it would be similar to a UK citizen being paid they’re holiday pay while in the country.

If anyone has any experience with this then it would be appreciated.

Thanks,

Keith

0 Likes

#2

Hi, this is fine and a normal situation for a digital nomad. The most common rule is that you become a tax resident after spending more than 183 days in a tax zone.

0 Likes

#3

Don’t ask. Don’t tell.

Never, ever, ever volunteer information to immigration or any government department for that matter. These chimpanzees only operate within a very limited range and anything outside of the norm will just set off the alarm bells. Don’t worry. Travel, work remotely and bill via your UK Ltd. Spend money in the local economy. Leave.

It’d be no different to visiting on a business visa (which I’m pretty sure as a British passport holder, you don’t need a different type of visa for - but I could be wrong).

Have a great time!

0 Likes

#4

While it’s correct that you often automatically become tax resident (and liable on taxes on your worldwide income) after ~183 days in a country, you may very well become tax resident well before that due to other triggers. More information for Australia is available here.

Australia also tax temporary residents (typically people on a working holiday visa) on their locally sourced income (meaning for work performed in Australia—so technically including remote work, but in practice I wouldn’t worry about it). As of Jan 1, 2017 temporary residents pay a flat tax of 19% on their income up to AUD 37,000 and regular tax rates thereafter.

Bottom line is, as long as you’re not on a working holiday visa and do what @international_man said above, you’ll be fine. Whether you rent a desk at a coworking space or work from your apartment is not likely to affect your tax liabilities to Australia.

Cheers!

Disclaimer: This is in no way legal or tax advice. Don’t believe anything I just said, or anything else you read online.

0 Likes