• Selling goods through a permanent establishment in Australia

    Selling goods from a treaty country through a permanent establishment in Australia

    This section applies to you if:

    • you are a resident entity of a country that has a tax treaty with Australia
    • you export goods to Australia through a permanent establishment in Australia, and
    • you employ staff in Australia.

    Under these circumstances, you will have the following tax obligations:

    • Income tax - Your business profits, attributed to your Australian permanent establishment, will be subject to Australian income tax.
    • Capital Gains Tax (CGT) - You will be subject to Australian CGT if you sell or dispose of assets that are taxable Australian assets.
    • Goods and Services Tax (GST) - You may be liable for GST. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
    • Superannuation and PAYG withholding - If you employ a full-time, part-time or casual worker, you are likely to have Australian superannuation obligations and PAYG withholding obligations.
    • Fringe benefits tax (FBT) - If you employ a full-time, part-time or casual worker and you provide benefits to them or their associate (typically family members) in place of, or in addition to, salary or wages, you may have fringe benefits tax (FBT) obligations.

    You will need to register for an Australian Business number (ABN).

    Selling goods from a non-treaty country through a permanent establishment in Australia

    This section applies to you if:

    • you are a resident entity of a country that does not have a tax treaty with Australia
    • you export goods to Australia through a permanent establishment in Australia
    • you employ staff in Australia.

    Under these circumstances, you will have the following tax obligations:

    • Income tax - You may be liable to pay income tax. You need to work out the source of your income, as this will determined how you are taxed.
    • Capital Gains Tax (CGT) - You will be subject to Australian CGT if you sell or dispose of assets that are taxable Australian assets.
    • Goods and Services Tax (GST) - You may be liable for GST. GST is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
    • Superannuation and PAYG withholding - If you employ a full-time, part-time or casual worker, you are likely to have Australian superannuation obligations and PAYG withholding obligations.
    • Fringe benefits tax (FBT) - If you employ a full-time, part-time or casual worker and you provide benefits to them or their associate (typically family members) in place of, or in addition to, salary or wages, you may have fringe benefits tax (FBT) obligations.
    • Other tax obligations - If you are exporting goods to Australia by selling to an Australian resident entity on a free on board (FOB) basis, this may be considered an importation by the Australian entity. This means you may not have Australian tax obligations - rather, your Australian customer will have tax obligations relating to the importation.

    You will need to register for an Australian Business number (ABN).

    See also:

      Last modified: 28 Oct 2016QC 18431