Every year, countless young people travel all over the globe to embark on a working holiday. Traveling abroad is undoubtedly a very exciting experience for any backpacker. After all, there is so much to plan – from accommodation and employment to activities and sightseeing in your new location.
That said, it is hardly surprising that the local tax system is often the last thing many backpackers think of when arriving in a new country for a working holiday.
However, every digital nomad or working holidaymaker should know a little about tax, as it may well be beneficial in the long run – especially if you are due a refund.
In truth, countless working holidaymakers and digital nomads miss out on claiming their tax refund every year. And with that in mind, we’ve partnered with Taxback.com to outline everything you need to know about claiming your backpacker tax refund.
Tax refunds for Canadian working holidaymakers
If you visited Canada on a work-travel visa, there are many reasons why you could be due a backpacker tax refund – such as if you overpaid tax or have expenses that you can claim.
The easiest way to check if you’re due any money back from the Canadian tax authorities is to apply with Taxback.com.
They will review your personal circumstances to see if you’re eligible to claim any expenses and ensure you receive your maximum legal tax refund. They will also ensure you are 100% tax compliant in Canada. What’s more, if you are missing any of the official documents you need for your tax return, Taxback.com can help you to track them down.
The average Canadian tax refund a Taxback.com customer receives is $998 so it’s easy to see why checking how much you’re owed makes so much sense. Check out their free tax refund calculator here.
Can Australian backpackers get tax back?
Backpackers play a crucial role in Australia’s economy. In fact, backpackers account for roughly 13% of tourism spending in Australia – totaling roughly $3bn per year.
When you start working in Australia you will pay tax at 15% on the $45,000 of income earned. However, the good news is that you may be able to reclaim some of your tax paid by filing a tax return at the end of the year.
In short, you will likely be entitled to a tax refund if you:
- were in Australia on a 417 or 462 visa
- were considered a tax resident during the year (you visited Australia for more than six months and lived in the same place for that time)
- are from one of the following countries;
- United Kingdom
The average Australian tax refund is $2,600, and it is a good idea for every backpacker to file your tax return and check if you are due a refund.
In fact, even if you don’t think you will be due a tax refund, it’s also a good idea to file a tax return so that you can ensure you are 100% tax compliant in Australia. A clean tax record will come in handy should you wish to apply for another Australian visa in the future.
Backpackers may also be entitled to claim a tax refund of their Superannuation (these are mandatory salary deductions for your Australian retirement fund) contributions when you leave Australia.
The average Superannuation refund is $1,908, so it’s definitely worth investigating what you’re owed. You can easily file your tax return and claim your tax and Superannuation refunds online with Taxback.com.
Tax refunds in New Zealand
Backpackers in New Zealand typically pay between 12.5% and 38% tax on their income. How much you were taxed depends on a range of factors, such as:
- Amount earned
- Length of time you worked
- Type of work performed
- Amount of tax withheld from your wages
The good news is that Taxback.com can help you to claim a tax return, and their average New Zealand refund is $550. It’s free to find out how much you could get back, so be sure to use the New Zealand tax refund calculator.
Claiming tax refund as a non-resident in Japan
Many residents and non-residents in Japan are unaware that they are due a significant tax refund. If you worked there, you could be due tax back for a number of reasons, such as:
- You worked there a year or longer
- You are married
- You have dependants
UK tax refunds for backpackers
There are many reasons you could be due a tax refund if you worked in the UK. And yet, countless backpackers in the UK leave their money with the taxman each year.
After all, if you were on an emergency tax code, made redundant, or incurred work-related expenses, you could be due a refund. The average refund Taxback.com gets for workers in the UK is £963, so why not find out what you’re due back today?
Applying for a tax refund in Ireland as a non-resident
There are lots of reasons why non-residents who are working in Ireland may be due a tax refund. For starters, tax relief is available if you were emergency taxed had medical or work-related expenses, or were made redundant.
What’s more, if you were made to work from home due to the pandemic, there is a wide range of expenses you may be entitled to claim. The average Irish tax refund a customer with Taxback.com receives is €1076.17. So why not apply online today and find out how much you’re due.
Germany tax refunds for non-residents
Many workers in Germany can claim a tax refund if they meet the following criteria:
- Your annual income was under the tax-free allowance
- You worked part-time or had a temporary job in Germany
- You were not correctly classified for tax payments
- You financially supported your parents or other dependents in your home country
- You paid rent in both Germany and your home country
- You paid for flights to and from Germany
- You incurred work-related expenses such as travel costs
- You paid pension insurance
- You are married, but were taxed as single
- You had work-related expenses that were not covered by your employer
Remember, the average German tax refund with Taxback.com is €1,020, but you could be due even more. The easiest way to find out if you’re due a tax return is by using Taxback.com’s free German tax refund calculator.
Tax refunds in the Netherlands
Countless non-residents who visit the Netherlands leave their tax refunds behind each year. Many are unsure if they are owed anything, while others simply don’t know how to apply for theirs.
In truth, you could be due a refund if:
- You worked for part of the year
- You changed a job
- You took on more than one job
- You were granted a tax-free allowance of up to 30% of your salary
The average Dutch refund with Taxback.com is €910. The best way to find out what you’re due is by using the Taxback.com Dutch tax refund calculator here.
Who can claim a Belgian tax refund
There are several reasons you could be entitled to get tax back from Belgium, including if:
- You worked in Belgium at any stage during the calendar year
- Your income is under the tax-free allowance
- Your income in Belgium is more than 75% of your annual income received globally
Belgium has one of the highest tax rates in Europe. It also has one of the largest average refunds in Europe for customers with Taxback.com. After all, the average Belgian tax refund with Taxback.com is €2,300! That’s a lot of money to leave behind…
Next Steps to File your Backpacker Tax Return
If you lived and worked in any of these countries, Taxback.com can help you. After all, why not take the stress out of your refund application by letting the experts take care of it for you?
Don’t be one of the countless non-residents in foreign countries who leave their refunds behind every year. Apply for your tax refund with Taxback.com today, and thank me later!