Taxation Administration: Individuals Engaged in Foreign Service Variation Notice 2019
4. Variation4. Variation
Start here
Get a plain-English read of 4. Variation
Turn the raw legal text into a practical explanation grounded in Taxation Administration: Individuals Engaged in Foreign Service Variation Notice 2019.
4. Variation
The Australian tax amount to be withheld is calculated using the following steps:-
Step 1
Calculate the Australian dollar equivalent of the foreign earnings.
Step 2
Use the relevant pay as you go withholding tax table to calculate the amount of tax that would normally be withheld on those earnings. The amount is based on the information the payee supplied on a Tax file number declaration and, if applicable, a Withholding declaration.
Step 3
Subtract the Australian dollar equivalent of the amount of tax withheld and paid to the foreign country from the answer to Step 2.
Step 4
The result of Step 3 is the amount to withhold. If the result from Step 3 is zero or negative, there is no amount to withhold.