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Commentary

6.4 Outbound employees assigned abroad

Australia

Australian resident employers are required to observe Australian PAYG and superannuation obligations when posting resident workers overseas.

The ATO has released Taxation Determination TD 2011/1, which clarifies the obligations of foreign employers in relation to Australian workers employed overseas. The Ruling states:

''2. A non-resident entity that pays an Australian resident for work performed overseas must withhold an amount in accordance with section 12-35 of Schedule 1 to the Taxation Administration Act 1953 (TAA) if the non-resident entity has a sufficient connection with Australia. Note that the requirement to withhold in section 12-35 is subject

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