Corporate Tax

Income Tax:

A foreign company may be considered a resident of Australia for income tax purposes if it is incorporated in Australia or carries on business in Australia, and either its central management and control are in Australia or voting power is controlled by shareholders who are residents of Australia. Proposed changes to the corporate residency test aim to consider a foreign company as an Australian tax resident if it has a significant economic connection to the country, with core commercial activities and central management located in Australia. Resident companies are subject to a general corporate tax rate of 30% on worldwide income. Smaller companies with annual revenue below AUD 50 million may qualify for a tax rate of 25%. Foreign companies with a permanent establishment in Australia are also subject to these corporate tax rates.