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myTax 2021 Foreign employment income – on an income statement/payment summary

How to report foreign income, from an income statement when you lodge your return using myTax.

Last updated 31 May 2021

Complete this section if you received an income statement or PAYG payment summary – foreign employment for income you earned working overseas as an employee, such as salary, wages, commissions, bonuses or allowances.

Things to know

Include foreign employment income shown on an income statement or PAYG payment summaryforeign employment from any of the following:

  • salary and wages – including COVID-19 related payments you receive from your employer such as JobKeeper and stand-down payments
  • lump sum payments – including COVID-19 related allowances such as a pandemic allowance

If your income statement or payment summary also shows any of the following, include those details here:

If you received a COVID-19 related payment from your employer and are unsure if you need to declare this income on your tax return, see Tax on employment payments for further information.

If you are an Australian Government agency employee (and not a member of a disciplined force), you pay tax on income earned from delivering Australian Official development assistance (ODA). Include your income here.

Members of a disciplined force delivering ODA are still eligible for exemption. For more information, see Exempt foreign employment income.

Hybrid mismatch rules

If you incurred expenses which are deductible to you in deriving assessable foreign source income, you may need to consider whether the hybrid mismatch rules apply to you. See hybrid mismatch rules to work out whether an otherwise deductible expense amount is not allowable as a deduction under these rules.

Do not show at this section

Do not show at this section if you received:

Completing this section

You will need your income statement, PAYG payment summary – foreign employment or a comparable statement such as a letter or signed statement from each employer or payer.

See also:

We pre-fill your tax return with foreign employment income information provided to us. Check them and add any income statement or payment summary information you received for foreign employment income that has not pre-filled.

To personalise your return to show foreign employment income on an income statement or payment summary, at Personalise return select:

  • You received salary, wages or other income on an income statement/payment summary, Australian Government payments, or First home super saver (FHSS) scheme payment.
  • Foreign employment income (on an income statement/payment summary).

To show your foreign employment income, at Prepare return select 'Add/Edit' at the Income statements and payment summaries banner.

At the Foreign employment income banner:

  1. Enter the Occupation where you earned most income.
    If you can't find your specific occupation, choose the most appropriate one that applies to you.
  2. For each income statement or payment summary you received for foreign employment income that has not been pre-filled in your tax return, select Add and enter information into the corresponding fields.
    If you do not know the Payer's Australian business number (ABN) leave this field blank.
  3. For each income statement or payment summary that has a Lump sum A greater than '0', select the Lump sum A type.
  4. For each income statement or payment summary that has a Lump sum D greater than '0', these are the tax-free components of a genuine redundancy payment or an early retirement. myTax will not include this tax-free income in your taxable income.
  5. For each income statement or payment summary that has a Lump sum E greater than '0', enter the required additional information (year and amount earned) and select Save. If the payment relates to more than one year, select Add and provide the additional details.
  6. For each income statement or payment summary, enter the Net foreign employment income.
    Your net foreign employment income is the total of your Gross payments and Lump sum A and Lump sum E less your deductible work-related expenses you incurred in earning your foreign income.
  7. Select Save.
  8. Select Save and continue when you have finished the Income statements and payment summaries section.

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