Published on 17 Oct 13
by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE
When business is going well in Australia, the inevitable question is often asked of advisers - should we consider expanding offshore? Businesses want to know what it is they need to consider from establishing a structure to sending staff offshore to set things up. Expanding offshore can be daunting and risky but can also provide a huge opportunity for our clients. This paper looks at a range of tax issues relating to the expansion of Australian business operations offshore using a case study involving the deployment of a sales force to Singapore and commencement of manufacturing in Indonesia to work through the Australian income tax and employee tax issues requiring consideration.
Issues explored include:
- tax and commercial considerations in setting up business
- how profits are taxed
- tax structuring
- profit repatriation
- elimination of double taxation
- Taxation of Business Restructures
- structuring employee contracts
- taxation of individuals including residency and treaty interaction
- other Australian employment tax matters including FBT and SGC.