Tax Planning in Australia

When tax planning in Australia, there are many different ways in which investors can conduct business in Australia, including corporations, branch offices, subsidiaries, joint ventures, partnerships and trusts. However, for international investors the most appropriate vehicles are usually Australian subsidiary companies or Australian branch offices. Although there is not a great deal to choose between the two (both are subject to the standard corporate tax rate), in practice most foreign companies choose to operate through a locally-established subsidiary company, as this has the added benefits of limited liability and separate legal status.

When tax planning in Australia, it must be considered that franked dividends from an Australian subsidiary are not subject to withholding tax when paid to the foreign parent company.

At a rate of 30%, Australia-resident companies are taxed on worldwide income from all sources.

Exemptions however are available if income and capital gains have already been taxed in a foreign jurisdiction.

State, territory and local governments do not impose additional corporate tax, which comes into consideration when tax planning in Australia,. However, they do impose some taxes which might impact foreign companies operating in the country, including payroll tax (more applicable to larger employers), stamp duty and land tax.

When tax planning in Australia, an Australian company is required to register for goods and sales tax (GST) if annual sales exceed $50,000. If the company is not registered for GST, it cannot issue tax invoices.

When tax planning in Australia, the country has signed Double Tax Agreements with more than 40 countries. A Certificate of Payment, as proof for non-residents of taxes paid, will only be verified for those payees whose country of residence has a comprehensive double taxation agreement with Australia. For a list of Australia's Double Tax treaties, please refer to the Australian Taxation Office (ATO) website.

Many strategic advantages are offered to international business people by Australia. A successful Australia tax planning strategy requires taking advantages of Australia tax regulations. Healy Consultants' tax experts deliver a comprehensive Australia tax planning strategy to our clients. A successful Australia tax planning strategy should address some of the following issues:

Can the Australia company receive foreign-sourced income without being subject to local corporation tax? Central to Australia tax planning strategy is the rule that a properly-structured Australia company is exempt from further tax payment on such income if it is from a "listed" jurisdiction, subject however to Controlled Foreign Corporation (CFC) rules. A listed jurisdiction is a jurisdiction which has a similar tax system to Australia.

Are any tax exemptions or tax incentives available in Australia? A successful Australia tax planning strategy should identify both tax exemptions and restrictions. Resident companies pay tax on their worldwide income and capital gains (with certain categories of income and capital gains being exempted and with tax credits being granted where income and capital gains have already been taxed in a foreign jurisdiction).

Does the company have to register for value added tax (VAT) or goods and sales tax (GST)? It is important to note for Australia tax planning strategy that in accordance with GST Law, an Australia company is obliged to pay a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.

When incorporating a company in Australia, the entity is liable for corporation tax for income generated in Australia and internationally.

Healy Consultants has a range of Australia tax planning services which are designed to meet your exact needs. Unlike many corporate services providers, we take a global approach to our Australia tax planning services, thinking 'outside the box' to create the best Australia tax planning strategy which fits your needs. Our international tax professionals provide the best Australia tax planning services to organisations of all sizes. Our Australia tax planning services include but are not limited to:

Offshore company formation - offshore company formation is an important aspect of Healy Consultants' Australia tax planning services. In certain circumstances, a properly-structured offshore company results in a tax-efficient corporate vehicle through which international business can be conducted. For more information, refer to Healy Consultants Offshore company formation webpage.

Offshore Trusts and Foundations - offshore Trusts and Foundations are ideal for entrepreneurs and high net worth investors who need to legally minimise their international tax exposure and optimise asset protection. More information may be found in the Offshore trust formation.

Australia corporate bank accounts - offering a reputable and reliable corporate bank account is fundamental to Healy Consultants' Australia tax planning services portfolio. With tax advantages in mind, we are able to assist you in penning an Australian or an international corporate bank account with leading international banks in the jurisdiction of your choice. Refer to the Australia corporate bank account webpage for more information.

Mergers and Acquisitions (M&A) - some clients approach us for assistance with their merger and acquisition plans. Our Australia tax planning services include providing invaluable advice on drawing up an M&A roadmap and developing a tax-efficient structure in going forward.

Australia and international tax legislation - at the heart of our successful Australia tax planning strategy is the need to keep abreast of international tax legislation. A key aspect of Healy Consultants' Australia tax planning services lies within keeping our clients informed of regulatory changes before they may have any negative impact.

Double Taxation Treaties - Australia has signed double taxation agreements with more than 40 countries. Making our clients aware of the availability of such tax relief tools is a core element of our Australia tax planning strategy and one of our Australia tax planning services.

Australia Corporate and personal income tax advice - Healy Consultants' Australia tax planning services include advising clients on the latest corporate and personal income tax rates in Australia, as well as assist our client to prepare and submit Australia corporation tax computations and Australia tax returns to the relevant tax authorities, including the ATO.

GST and VAT registration - through this Australia tax planning service, Healy Consultants can assist our clients through this important step.

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