Foundations
Foreign Investors
Johnston Rorke has substantial experience in assisting foreign owned groups establish or acquire business operations in Australia.
Critical issues together with some basic commentary are discussed below. Please do not use this overview as a substitute for advice.
Taxation Presence
Non-residents of Australia are generally subject to taxation on Australian sources of income unless relief is provided under a Double Tax Agreement.
Whilst differences can occur, Australia’s Double Tax Agreements are generally consistent with the OECD Model.
In the typical treaty, foreign residents will only be subject to tax on business profits sourced in Australia where a permanent establishment exists.
In circumstances where a permanent establishment exists it is necessary to consider the appropriate taxation structure.
- An Australian incorporated company
- An Australian branch
- An Australian unit trust
Limited partnerships can also be used however they are not a widely implemented business structure.