Investing overseas can provide opportunities not available in Australia, and is now easier than ever. However, it is important to realise how income from your foreign investments is taxed and how your investment returns will be affected.
Types of overseas investing include offshore bank accounts, capital gains on overseas assets, interest in foreign entities, and rental income from overseas property.
Australian residents are not only taxed on their income within Australia – but worldwide. As such, you must declare income received from overseas investments in your tax returns. If you have already paid tax overseas, you may be able to claim a foreign income tax offset.
To find out more about the tax implications of overseas investing, speak to our team at Option Accounting today by calling 1300 878 898.