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Tax authorities

Australian Taxation Office
Ground Floor, Ethos House
28-36 Ainslie Avenue
Civic Square ACT 2600
Tel: +61 2 6216 1111
Fax: +61 2 6216 2830
Website: www.ato.gov.au

Tax rates at a glance

(As of September 2011) 

Corporate Income 30%
Capital Gains 30%
Branch Tax 30%
 
Withholding Tax
Dividends
Franked 0%
Unfranked 30%
Interest 10%
Royalties from Patents, Know-how, etc. 30%
Branch Remittance Tax 0%
 
Net Operating Losses (Years)
Carryback 0
Carryforward Indefinite
  • It is proposed that the tax rate for corporations classified as small businesses be reduced to 29%, effective from the 2012–2013 tax year, and that the corporate income tax rate be reduced to 29%, effective from the 2013–2014 tax year.
  • For corporations, capital gains are taxed at the corporate income tax rate, with no reduced tax rates.
  • It is proposed that the branch tax rate be reduced to 29%, effective from the 2013–2014 tax year.
  • Withholding tax on unfranked dividends is a final tax that is imposed on payments to nonresidents only. A reduced rate (in recent treaties, reduced rates typically are 0%, 5% or 15%, depending on the level of ownership) applies to residents in treaty countries. An exemption from dividend withholding tax applies to the part of the unfranked dividends that is declared in the distribution statement to be conduit foreign income.
  • Interest withholding tax is a final withholding tax that is imposed on payments to nonresidents only. However, withholding tax is imposed in certain circumstances on interest paid to residents carrying on business overseas through a permanent establishment (branch). Modern Australian tax treaties exempt government and unrelated financial institutions from withholding tax. Unilateral exemptions from interest withholding tax are provided for certain publicly offered debentures and for state and federal government bonds.
  • Withholding tax on royalties from patents, know-how etc. is a final withholding tax that is imposed on gross royalties paid to nonresidents. A reduced rate (5% in recent treaties) applies to residents of treaty countries.
  • Tax losses incurred in the 1989-1990 and subsequent tax years may be carried forward indefinitely.

Source: Ernst & Young

Australia

Ian Farmer
PwC
Australia

Tax policy makers have been active in Australia but there is still progress to be made concerning a coherent strategy, believes Ian Farmer of PwC

[Show full article]

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PwC

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Henry Davis York runs a specialist transaction advisory practice with a focus on financial services. Partner Greg Reinhardt, recommended for his knowledge in capital markets and financial products, leads the tax team that advises companies on the tax ... [more]

See also

Australia
Asia-Pacific

Firm contact details