Question

Pablo is a Portuguese resident employed by a Portuguese company. He is sent to Australia to work on a short-term project to assist with the establishment of a branch office of the company in Australia. Pablo works in Australia for one month. Throughout this period, his salary was paid into his Portuguese bank account. During the year, he earned the equivalent of A$120,000 from his employment. Does Pablo have to pay Australian tax on any of his salary?

Answer in around 300 words

ps: require plagiarism free answer

Answer 1

Absolutely Yes, Pablo have to pay Australian Tax on salary that he received in Protuguese bank. Since the amount that he received, is also for his work done in Australia He is liable to pay Australian tax for that part only. Pablo have on worked in Australian territory for 1 month i.e. 30 days. He is also not considered a Resident of Australia but of Protuguese So, He will be taxed as non-resident in Australia. ( Although jt is also subject to minimum threshold on Income which is exempted for Income Tax Assesment Act,1997 (Australian Taxation Law)

Remaining 11 months he have worked in Protuguese and for that period , He is liable to pay Protuguese taxes.

So, Amount which is liable for taxation subject to minimum threshold :

A$120000 ÷ 12 Months = A$10000

*(subject to taxation law).

Remaining Amount which will be liable under Protuguese Taxation. :-

A$120000- 10000= A$110000.

Conclusion :-

Yes, Pablo Australian Tax liability will be levied on Pablo but only for the portion on year he worked there.