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The foreign income of an Australian resident may be taxed in the source country and is therefore potentially subject to double taxation. To overcome this, Australia has a system of credits and exemptions and has signed tax treaties with more than 40 countries, including all our major trade and investment partners.
If you have assessable (taxable) income from overseas, you must declare it even if tax was taken out in the country from which the income was derived. If foreign income is taxable in Australia and you paid foreign tax on it, you may be entitled to a foreign tax credit. |
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