Moving abroad for your career can be one of the biggest life changing chapters of your life. It is very important that you are properly prepared for this. You should have everything ready including your expenditure plans, passport and packing. However, one of the most common things that people often forget is to learn about taxation of the country they are going to and the taxation policies of the countries they are citizen of.
Tax Tips You Need to Know
- Many countries like the USA and Australia, tax their citizens on their international income. So, if you have got a job abroad, it is important that you file your return on time. Some countries provide an extension like America, but tax rules are pretty strict in other countries. You can also request an extension, but then you will have to pay the interests.
- You should know how to utilize your provisions of the taxation policies of the government. Many people can get exclusions on foreign housing if they have qualified for foreign income exclusion.
- If you own a house and planning to move abroad, you may go for the option of renting it. This way you can earn some extra income from your property. When you choose to do so, you need to be aware of tax implications.
- The taxation rules for people working abroad may be different for each state. In some states, there is no rule for income tax return for citizens, who live overseas and each state has different domicile requirements for their citizens.
- In case you have taken loan from the government for education purposes, you need to be aware of the debt repayments rules of your country. Many countries let their citizens continue their living in foreign countries without any problem but most of the countries ask for the loan repayment within 6 months of their graduation. You need to make compulsory repayments in this case.
- Your country’s taxation law will still consider you liable to pay the medicare levy on the tax. In case you are no longer the citizen of your home country, you get freed from such liabilities.
- When you plan to leave your country, the taxation rules may all apply the same. You need to reach a certain age or satisfy some condition of release to apply for superannuation. This will help you avoid any legal problems in the process.
- You need to know how to access your tax file number and other important details while you are abroad. You can also carry your original documents with you. If you are not having a job after moving abroad you need to learn about tax-free
People moving abroad often don’t pay attention to moving abroad tax rebate and end up in legal troubles. You need to have all your information and contact details changed in the taxation office of your country before you move. Remember these important things and learn about the rules and regulation of your country’s taxation policies to avoid any problems.