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Capital gains tax on International Shares

Discussion in 'Shares' started by RyanE, 30th Jun, 2009.

  1. RyanE

    RyanE New Member

    30th Jun, 2009
    Melbourne, VIC
    Hi, I am new to shares investing and was wondering if any of you can help me out with this or direct me to where I can find the answers. I have some trouble knowing who to pay tax to in the following scenarios.

    1. If I am an Australian resident with a Japanese broker buying American shares, and I make a profit from selling the American shares, who do I pay capital gains taxes to? To Australian government, Japan, or America?

    2. An Australian resident buying Australian shares via a broker in Japan. I make a profit from selling the Australian shares. Who do I pay taxes to?

    3. An Australian resident buying American shares via a local Australian broker. Who do I pay taxes to if I make a capital gain?

    Thank you for your help.

  2. Jenni

    Jenni Active Member

    27th May, 2009
    Brisbane, Qld
    As an Australian resident you must declare all income, from all sources on your Australian ITR. However, if you make a profit form investing in another country eg American shares you may have to lodge an ITR there too and then you should get a credit for any tax paid overseas.