I’ve been daydreaming today while working at my crap (home-based) job about living in SE Asia (Thailand or maybe Cambodia). Please note, this is still all in the pure fantasy-stage, but just wanting to get a bit of background if I may.
So say I move to Cambodia, rent a house in some dinky village for a couple of years, and work from home via the Aus-based company.
Do I have to pay income tax to the Australian Tax Office? Or does being a non-resident exclude me from paying tax for that time? Do I need to pay tax to the Cambodian Taxation authorities? How do I go about setting that up?
As I said, still dreamin’, but hey, a girl’s gotta ask!
You don’t say why you’d use an Australian company. Why would you? Does your business or income have any other links with Australia? If not, why would you create this link? I don’t see any obvious advantage, and it could provide a basis for taxing at least part of your income.
As a resident of Cambodia, my guess is that you’re liable to Cambodian tax on your worldwide income; that’s the usual model for resident’s tax liablity. I have no idea what Cambodian income tax rates are like.
Some countries do have concessions for non-nationals who become residents temporarily, particularly if their temporary residence is connected with inward direct investment into that country. These arrangements are concessional; their purpose is to attract inward direct investment. The kind of countries that do this are countries that have a development strategy which involves attracting inward investment, and which are competing with neighbours who have a similar strategy. The concession, where it exists, is unlikely to amount to a complete tax exemption, but it might mean that, e.g., you pay income tax only on your income sourced in the country of residence. I have no idea whether Cambodia has any such arrangement, though.
I currently work for this particular Australian company, in AUSTRALIA. Because my job is ‘remote’ (I work via internet and phone only), it can be transported to any place in the world I believe.
As a non-resident of Australia, you will be liable for Australian tax on your Australian-source income, which of course will include the pay you receive from the Australian company (unless the Aus company can be persuade to establish a Cambodian branch or subsidiary to employ you which, unless they really, really love you a lot, is not very likely).
There might be some relief available under the Australia-Cambodia double taxation agreement - if such a thing exists.
Thanks UDS, that’s what I sort-of thought, but wasn’t sure. Yeah, I don’t think they’re going to be opening branches in Cambodia in the near future…they do have some subsidiaries in England and NZ now, but I reckon Cambodia might be out of the loop.
