Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, the information provided below cannot be considered as comprehensive or deemed to constitute specific legal advice.
Yes we tax in Australia
New tax reform: No specific information
New tax treaties:
- Tax treaty between Australia and Mongolia is under negotiation.
Local tax advisors
No specific information on the local tax advisors.
Website Tax administration: Click here
The domestic definition of Permanent Establishment follows the wording of article 5 of the OECD Model
Resident companies are taxed on their worldwide income (« worldwide principle »). However, non-resident companies are only taxed on their revenues derived from Australia sources (« source principle »).
Entities are considered to be resident for tax purposes in Australia if they are incorporated in Australia; or, if their place of management & control is in Australia; or if they carry on business in Australia; or if the voting power of such entity is controlled by shareholders who are residents in Australia.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 30%.
Small companies are taxed under a 27.5% CIT tax rate.
Non-taxable income includes the following:
- Certain capital gains;
Non-deductible expenses includes the following:
- Interest in excess of the thin-capitalization threshold
- Fines and penalties
Carry forward: Yes, but some restrictions may apply.
Carry back: No
Companies should submit the tax return annually before the 15th July of the following year.
Annual tax returns are established by the company on a self-assessment system.
Companies shall pay quarterly advance payments; and the balance must be paid before 1st June of the following year (in the case where fiscal year coincides with calendar year).
Whithholding Taxes (payment to foreign companies)
The local tax rates in Australia are the following, subject to the provisions of an applicable double tax treaty, if any.
There is no WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 30% of the gross amount.
Note : « franked dividends » are exempt of WHT. Click here for more information.
The general rate of WHT on interest is 10%.
The general rate of WHT on Royalties is 30%.
The general rate of WHT on management fees is 0%.
The general rate of WHT on technical services is 0%.
Generally, capital gains are taxed under the regular CIT as general income.
Standard GST tax rate is 10%
Exempt supplies include, subject to certain conditions:
- Certain financial services
In case where for a tax period, Input GST exceeds Output GST, certain non-resident companies (which are not required to register and incur Australia-GST in the course of their business activities in Australia) may apply for a refund under the same conditions than resident companies.
However, a GST refund can only be made to an Australian bank account.
No other specific information of GST in Australia.
The general statute of limitation is 4 years.
There is no foreign exchange control in Australia. Income and capital could be freely repatriated. In certain cases reporting requirements may apply.
There are thin capitalization rules in Australia. The interest derived from loans between related parties (local and non-resident) may not be deductible in case where interest exceeds some ratios (1.5 times the taxpayer’s net equity for all entities, and 15 times the taxpayer’s net equity for financial entities).
Do not hesitate to share your experience in Australia with us in the comments below. Any comments are welcome !