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  • Foreign business income

    Your tax obligations will depend on if your business transaction is with a country that has a tax treaty with Australia. Australia has treaties with over 40 countries.

    See also:

    Operating a business through permanent establishments in another country

    A permanent establishment is a fixed place of business. It includes any of the following:

    • a sales outlet
    • a branch
    • a place of management
    • a factory
    • a workshop
    • an office
    • a dependent agent who has authority to enter into contracts on behalf of the enterprise and does so regularly.

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

    See also:

    Australian-owned subsidiaries incorporated in another country

    Different arrangements may apply to Australian-owned subsidiaries incorporated in another country.

    Generally, a subsidiary incorporated overseas:

    • will be taxed as a foreign resident under Australian tax law
    • is not considered to be a permanent establishment of its Australian parent company.
      Last modified: 28 Oct 2016QC 18452