I have the same question
As far as my situation goes I'm working for an Australian company and invoicing them from my Canadian company.
It's dodgey but I've set up a personal bank account with the National Bank of
Australia that they deposit my payroll into Tax free and then I am using internet banking to then transfer that money into my corporate account in Canada...
I've only done this once as this was my first monthly hitch in Austalia and the payroll lady for the company is some foreigner there and I could not get the point across that they would have to pay my account in Canada directly...Wire transfers and swift codes etc seem to be too much for her to figure out...
I needed to get the money to my account in Canada quickly and this has worked so far and the money arrived today. There was a 22AUD fee for the transfer. The maximum $'s allowed to transfer is 20,000.00
My question is also what about tax implications? Is there going to be some sort of drama with the Australian government over this?
Is there going to be problems or questions from the Canadian Government over this?
For some reason or other the company I work for cannot
transfer money from their account to my Canadian account...WHY? Is this just a lame excuse not to do the extra work or is this legitimate?
I will try to reason with them and get them to pay my corporate account directly as MOST of the overseas companies I have worked for in the rest of the world had no problems doing.
Mind you I was always paid through an independant agency rather than from the company directly.
My struggle continues.
-- Thu Feb 19, 2009 4:17 am --
Just got things all sorted out.
DON'T pay yourself from a personal account in Oz!
The tax man will get you there and here too. Unless you want the company your working for to start deducting about 46-48% of your pay...Get them to pay your company in Canada directly.
The company your contracted to should be able to pay your corporate account directly in Canadian funds. If they use internet banking there will be a fee for around 22 AUD that they would have to pay to transfer the money. They will need to change AUD to CAD and then you will need a proper Swift Code for Canadian funds from your bank and an account number and all your banks information, transit numbers, address phone numbers etc.
The Swift code is important and most banks will except only GBP, US or Canadian dollars. Each currency has it's own Swift Code so be sure to get it right! If it comes into your bank acct in anything but CAD they will charge you for an exchange to CAD plus the transfer fee to that account. Most banks charge in incoming transfer fee of 2-3% of the total.
This will only work if you have a corporation in Canada. I'm not sure about sole proprieter businesses etc...
You will need to invoice your employer with invoices from your company based on AUD at the exchange rate at the time of invoice.
Have your company in Canada pay you a salary and deduct all the proper deductions IE TAX,CPP, EI etc. Be sure to do this or you will end up in trouble with Revenue Canada. Believe me nasty letters do get sent...
I've done this working in other countries and have had no problems whatsoever so Australia shouldn't be any different.
If you don't have a corporation to use you can get in touch with me.
I have a recruitment agency here in Canada and I can do payroll and all the back office work for you as well as insurance etc. Your employer would then pay my company and I would then pay you...All for a small fee of course...
Good luck
D