Australian resident companies that derive Australian source income or foreign income are required to lodge a return. Although companies fully self-assess their liability for income tax, they are still required to lodge a return specifying their taxable income and the amount of tax payable on that income and, for this purpose, are required to use the company tax return form. Lodgment of returns for companies that have an annual total income greater than $10 million or are otherwise deemed as large/medium business taxpayers are due by 15 January following the relevant income year. For most other companies, the date is 28 February and a letter will normally be sent out by the Tax Office advising what lodgment and payment due dates apply.
If the return is prepared and lodged by a tax agent, different lodgment due dates may apply.
A corporate entity usually pays tax at the rate of 30 cents on each and every dollar of taxable income. A company is not eligible for the basic tax-free threshold that is available to individuals.
Companies generally pay their tax under the pay as you go (PAYG) system in either a single lump sum or in quarterly instalments.