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How does that work with income banding? Like, does the foreign country take your whole income and then band it in their own way or do they compare it with the other countries bandings?
Also, that still doesn't answer how they share this tax info? Like, does the UK know about my savings in Oz? They've never mentioned it anywhere.
hippy-
I think you're supposed to be declaring unearned income. I know the form as Self Employed Declaration but it contains lots of sections on income from investments at home and abroad.
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How does that work with income banding? Like, does the foreign country take your whole income and then band it in their own way or do they compare it with the other countries bandings?
I believe they band it in their own way, as if the money was earned in the home country.
Also, that still doesn't answer how they share this tax info? Like, does the UK know about my savings in Oz? They've never mentioned it anywhere.
Depends on the countries involved.
US Citizens, I believe, have to complete a tax return in the US even if they live overseas and earn money in a foreign country. If they would have paid more in tax earning that amount in the US then they pay the difference to the IRS.
I'm sure there's some tax information sharing between the US and the UK for example.
I doubt the UK and Aus have any similar arrangement, and if they did it'd only be for the £££££ type of people, not the lowly average person that's
not in the golf club threadpaying less than £100k in tax a year.
Airhead
Greenbank
Most countries with home taxation requirements rely on the same principle:-
You get credit for tax paid in a foreign country but if the tax you would have paid back home was more that that then you pay the difference back to your home country.
(If the tax you would have paid back home was less then there's no rebate from your home country.)