Are the dividends you receive from a foreign company while you are a temporary resident included in your assessable income?
No. Temporary resident You are a temporary resident if you: hold a temporary visa granted under the Migration Act 1958 are not an Australian resident within the meaning of the Social Security Act 1991 , and do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991 . The Social Security Act 1991 defines an Australian resident as a person who resides in Australia and is an Australian citizen, the holder of a permanent visa, or a protected special category visa holder. In your case you are a temporary resident because: you hold a temporary visa granted under the Migration Act 1958 you are not an Australian resident within the meaning of the Social Security Act 1991, and you do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991. Foreign source income Those taxpayers who are temporary residents do not have to pay tax in Australia on most of their foreign income if they: are an individual who is an Australian resident for tax purposes, and satisfy the requirements of being a temporary resident. Section 768-910 of the Income Tax Assessment Act 1997
(ITAA 1997) provides that ordinary income and statutory income derived from a foreign source (excluding employment related income and capital gains on shares and rights acquired under employee share schemes) is not assessable in Australia when derived by a temporary resident. Therefore, when you become an Australian resident for tax purposes and continue to remain a temporary resident, any foreign source dividend income you derive will not be included in your assessable income. This ruling applies for the following periods : Year ending 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX Year ending 30 June 20XX The scheme commences on: 1July 20XX
You are a citizen of Country X. You entered Australia on a temporary visa. You are not a permanent resident of Australia. You are not a citizen of Australia. You are not an Australian resident for tax purposes. You intend to become an Australian resident for tax purposes. You do not have a spouse who is an Australian resident within the meaning of the Social Security Act 1991. You are a director of a foreign company. You will receive dividends from the company. You may receive remuneration from the company.
Income Tax Assessment Act 1997 Section 768-910 Income Tax Assessment Act 1997 Section 768-915 Income Tax Assessment Act 1997 Section 995-1