Doing business in Australia - what you need to know
Foreign residents are taxed in Australia on their Australian sourced income. This introduction explains how income from Australian business activities is treated. If you are earning income from passive investments in Australia (such as securities and rental properties) or interest and royalties, refer to Investing in Australia - what you need to know.
If you are a foreign-resident entity that receives income sourced in Australia, you must lodge an Australian tax return and pay tax on that income. However, you do not need to lodge a tax return if the only income you received consists of:
- interest, unfranked dividends or royalties from which withholding tax has been withheld by the payer
- fully franked dividends.