Published on 01 Feb 14
by "THE TAX SPECIALIST" JOURNAL ARTICLE
Australian taxation law raises many tax issues for non-residents of Australia who invest in Australian assets. This article considers in detail Australian taxation issues on investment into Australia by way of acquiring Australian real property. The article focuses on these issues, especially as they apply to Chinese individuals or entities that are non-residents for Australian income tax purposes.
The article examines the Chinese double tax agreement, residence rules including the treatment of residents of Hong Kong and Macau, rules governing the source of income, profits or gains including income from real property, the Australian tax treatment of income or gains arising from the disposal of Australian real property, capital assets and the application of capital gains tax, and the tax implications of adopting particular ownership structures and methods of funding investments. The article concludes with a discussion of the rules about collection of tax owing by non-residents.