• Capital and Income taxes – Yes for an individual ; If the company is incorporated in Australia or managed and controlled here – then Yes.
• Navigating Export/Import Taxes – Taxes will vary depending on the destination country. If your business does not physically operate in a country, then it is likely you will not need to pay tax for simply selling to the destination.
• Many businesses profit from eCommerce, meaning their business is based entirely online. If this sounds like your business, then you may not need to register for Goods and Services Tax (GST) in Australia.
• The question of whether your company is managed and controlled overseas or what is foreign source income or if there are any credits or double tax treaty applications of the same is complex.
• It is a must to seek the advice of a legal professional.

Foreign residents doing business in Australia

If you are doing business in Australia, you may need to register in our tax system and pay taxes in Australia. This depends on:

• if you are from a country that has a tax treaty with Australia
• the scale and nature of your business
• if you have a permanent establishment in Australia.
• Foreign resident tax rates 2021–2

If you’re a non-resident supplier of imported services, digital products or low value imported goods you have obligations to meet once you are registered or required to be for goods and services tax (GST).

Make sure you read this along with Non-resident businesses and GST and GST on imported services, digital products, and low-value imported goods into Australia to find out the rules that apply more generally.

Transfer pricing

• Australia has transfer pricing rules that need to be considered where goods or services are bought or sold between Australia and other countries.
• The transfer pricing rules have relevance to transactions between related parties in a corporate group for the supply of goods, services or finance that are not priced on terms which would be comparable to those that would be charged between parties transacting at arm’s length.
• If an international transaction does not occur at arm’s length or is not supported by an acceptable pricing methodology, then market prices may be substituted into the transaction for Australian taxation purposes to ensure an appropriate level of tax is paid.
• For an intra-group cross-border transaction to be deemed to have occurred at arm’s length, the Australian Taxation Office (ATO) requires that companies appropriately document the transaction itself and the pricing methodologies used when entering into the transaction.
• Other factors that may be taken into account by the ATO include, amongst other things, the commercial justifications for the transaction, any applicable review processes and whether any alternatives were considered.

Customs duty

• Customs duty is imposed on goods imported into Australia. The rate of customs duty is generally around 5% of the ‘customs value’ of goods, although this often changes depending on the type of good that is imported.
• The customs value of a good is determined as a question of law, taking into account the type of good, its country of origin and the purpose of its import into Australia.
• Customs duty is payable when the relevant goods enter Australia. The specific duty rules that apply will depend on how the goods are classified by the Australian Customs Service and may be altered by Tariff Concession Orders or Free Trade Agreements.
• The rules applying to customs duty in Australia are complex and importers should seek advice on a case-by-case basis.

Excise duty

• Excise duty is imposed on alcohol, tobacco, fuel and petroleum products that are produced or manufactured in Australia.
• If these products are imported into Australia rather than produced or manufactured in Australia, customs duty applies to their importation at a rate comparable to the excise rate (see above, Customs duty).
• Excise duty is paid by either the manufacturer or distributer at a flat rate. The applicable excise rates may increase twice a year to reflect inflationary changes.
• In addition, a licence is generally required to undertake activities in relation to excisable goods.

In Australia how to State jurisdiction to impose taxes and duties?

• States and Territories in Australia generally have jurisdiction to impose tax on various state-based transactions.
• States and Territories most commonly impose tax on immovable property situated in that particular State, as well as on various other state-based transactions such as car registration and employment.
• Many State and Territory taxes and duties are not consistent throughout Australia and therefore the laws applicable in each jurisdiction must be considered where relevant . The taxes and duties mentioned below however indicate some common forms of state taxation.
• For example, New South Wales imposes stamp duty on transfers of land according to a sliding scale that is dependent on the value of the real property.
• The cheapest valued properties attract stamp duty of 1.25%, with the rate

What is the meaning of Payroll tax?

• Payroll tax is imposed on employers whose annual wages paid to employees exceed a set amount determined by each state. The tax is generally between 3% and 7%.
• Payroll tax is currently payable in New South Wales at a rate of 5.45% for businesses who pay more than $750,000 in annual wages. By comparison, Victoria sets its threshold annual wages level at $550,000 and its rate of payroll tax at 4.9%.

Motor vehicle duties

• Often payable where a motor vehicle is registered in or transferred within a certain state. The duty is paid by the purchaser with the applicable rate of duty generally depending on the type of car and the circumstances surrounding its transfer.

• Whilst knowledgeable accountants are a great source of advice and practical input. The fact remains that tax legislation is still a law and you must seek the advice of a lawyer that is a taxation expert. In many cases these lawyers are also accountants will have training in finance and accounting.
• The principals of Goldman Law have extensive experience in accounting, finance and tax structuring well-being specialist lawyers tax planning locally and internationally.
• Tax partners in the big four accountancy firms may be lawyers and some are amazing experts in their chosen field, however you are dealing with a proprietary group and one which is not independent and you may be compromised if they are also your auditor.
• Further the big four cannot provide legal professional privilege which is one of the few ways that privacy and confidentiality of your records may be obtained.
• The big four also cannot provide the drafting of legal documentation which gives effect to the structure or plan.
• Most people do not go to lawyers for taxation advice because they simply cannot afford it. Taxation specialist lawyers are scarce in many charge in excess of $1000 per hour.
• When the stakes are high or the savings significant, we recommend you use the taxation lawyers and experts such as Jaswinder Sekhon of Goldman Law.

Brazenly, in many overseas jurisdictions the professional advisers are the subject of targets and it is a reportable event.

• This means the client comes into your offices say in London and seeks to avoid the tax instead of legally using tax planning methods, this client must be reported to the authorities or the lawyer is guilty of an offence.
• Our potential clients need to choose carefully the jurisdictions from which they are from the relevant laws that apply thereto. Frequently we see clients in Dubai which is an excellent low tax jurisdiction with substance.
• Nonetheless it is still possible to commit a conspiracy to defraud no matter where the physical location of the advice is if it concerns a particular jurisdiction.
• One should never say to their lawyer that they want to commit a taxation offence or are thinking about committing a taxation offence in the taxation offence may be committed simply with a conspiracy to defraud, without the actual act even occurring.
• Therefore, you need to speak to us very generally and ensure that no illegal transactions contemplated or planned.
• There is nothing wrong with basing your affairs in a tax haven or legitimately using low tax places such as to buy or setting up a New Zealand offshore trust.
• We do so regularly for clients asset protection purposes.
• These arrangements should be declared and there should be no false information provided to the relevant authorities where this is requested.
• Therefore these arrangements do not rely on nondisclosure which is illegal.
• There is a way to reduce taxes legitimately and also to become resident for tax purposes in a low tax country such as Dubai.
• There is a way to use New Zealand offshore trust to protect your global assets and other jurisdictions, to minimise your global taxation overall.
• We have written and published and lectured for over 30 years on these topics and have extensive experience on a range of clients with a range of issues.