I am a freelance IT consultant. When I eventually get to Oz, my UK contracts may continue (one contract in particular doesn't care whether I do the work in the UK, Timbuktoo or Sydney). My "company" can continue I suppose and it's profits taxed by the UK and I guess it can pay me by dividend.

What happens to dividend income originating in the UK and paid to an Oz taxpayer?

Hmmm ... be careful - if you control and manage the company and are tax resident in Australia you may find that the company becomes Aussie tax resident as well.

As such it might be preferable to form a new Aussie company to avoid the issue of UK company dealing with the UK Inland Revenue and the Australian Taxation Office.

In answer to your question though, in very broad terms a dividend paid from a UK company brings with it a notional tax credit equal to 1/9 of the dividend received. The gross divi (= the divi received x 10/9) is assessable in Australia and you can usually claim the tax credit against your Aussie tax liability.

In summary I suggest you might take some professional advice ...

Best regards.

Thanks Alan - that just what I was looking for. When it becomes a real issue rather than a possibility I presume GoMatilda can help?

Thanks

Yep!

Best regards.

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Originally posted by IT_Hooker:
Thanks Alan - that just what I was looking for. When it becomes a real issue rather than a possibility I presume GoMatilda can help?

Thanks

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