Does my country have a tax treaty with Australia?
To work out how tax applies to income you receive from international transactions involving Australia, you must first work out if that income has an Australian or foreign source. This may depend on whether your country has a tax treaty with Australia.
Generally, if you are from a treaty country, your business income is not subject to tax in Australia unless you carry on your business through a permanent establishment in Australia.
If you are from a country that does not have a treaty with Australia you will need to determine the place (country) the income is from as this will determine what income tax you will need to pay (if any).
Income you receive from goods or services you supply to Australia is generally income from one of the following:
- the place of the contract, if you are exporting goods or information (such as technical knowledge)
- the place where the services are performed, if you are exporting services – however, it can also be the place of the contract.
You may need professional advice to work out the source of the income you receive from an international transaction.