Example: If your business generates profits of AUD500,000 ($325,000), you will pay AUD150,000 ($97,500) in tax if you apply the standard rate of 30%.
The 10% GST applies to most goods and services sold in Australia. Foreign businesses with annual revenues exceeding A$75,000 ($48,750) must register to collect and remit this tax.
Example: If your business new zealand phone number library sells A$100,000 ($65,000) worth of goods per year, you will need to remit A$10,000 ($6,500) to the ATO as part of GST.
Tax benefits for foreign companies in Australia
If you are reading this because you are thinking of setting up a company, you will be pleased to know that, just like for individuals, there are tax incentives for foreign companies in Australia. This is a way of attracting capital from abroad and encouraging investment in key sectors. These benefits can help you reduce your tax burden and improve the profitability of your business.
Research and Development Tax Credits (R&D Tax Incentive)
Australia offers a tax credit of up to 43.5% for companies that invest in research and development (R&D) activities. This benefit is one of the most important tools to encourage business innovation in the country and attract foreign investment. The exact percentage of the credit depends on the size of the company and its annual turnover .