Are you from a treaty country?

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.

What is a permanent establishment?

A permanent establishment is a fixed place of business through which an enterprise either wholly or partially carries on its business. It includes:

  • sales outlets
  • branches
  • places of management
  • factories
  • workshops
  • offices
  • dependent agents who have authority to enter into contracts on behalf of the enterprise and regularly exercise that authority.

Generally, having a website that is hosted by an independent internet service provider is not regarded as having a permanent establishment in Australia.

Further Information

To work out if you have a permanent establishment, refer to Taxation Ruling TR 2002/5.

If you operate a subsidiary in Australia, different arrangements may apply - see Are you a foreign owned subsidiary incorporated in Australia?

If you intend to have a continuing business presence in Australia, refer to Selling goods into Australia from a treaty country without a physical presence in Australia in Selling goods into Australia.

Even if you don't have Australian income tax obligations, you may have other tax obligations in Australia. Refer to:

End of further information
    Last modified: 09 Aug 2012QC 18324