I am an Australian and moved to the UAE a little over a year ago. I have a portfolio of stocks back in Australia that I manage myself, but while my income in the UAE is not subject to tax back home, I would like to know the situation regarding my shares. HJ, Abu Dhabi
While you are non-resident, virtually all share trading, via your Australian share-trading account, will be free of tax and therefore no capital gains tax will be charged on profits that you take. Any dividends that the company has paid company tax on will not have a personal tax liability, although if the company has not paid this, a withholding tax of 15 per cent will be payable. Should you return to Australia and become a resident again, the shares will become subject to tax, but only on gains made in excess of the value on the date of your permanent return.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai. Contact her at keren@holbornassets.com
