Taxation Law

Taxation Law

Dear Carol,

When one imports any good from abroad in Australia, he or she must understand the rules and regulations of importing any good and the taxes applicable on the import of goods. The Australian tax system is similar to the German tax system, which is extremely complex and sometimes confusing. Companies can find many surprising parallels, but there are also significant differences, the most obvious probably at the end of the tax year on 30 June. Foreign companies can make their tax returns, however, with permission, on a calendar year basis. The Australian Taxation Office ( ATO ) monitors the compliance with tax laws and is responsible for the collection of taxes. The main taxes are described briefly below:

•Income Tax: This is the main source of income for the state. The basic tax rate, which reaches from income above the exemption level of 6,000 Australian dollars is 17 per cent, rising to 47 percent over several stages in the head. For people not living permanently in Australia, the taxation of income begins the first time they earned dollars at a rate of 29 percent. In recent years, there were modest reductions in the income tax burden, for example, the top tax rate is applied only at higher incomes, and simplifications have been introduced for non-living people permanently in Australia.

•Corporate income tax: The corporate tax rate is 30 percent on corporate profits. It is possible, corporate groups, where is the daughter of the parent company to 100 percent, to consolidate as a tax entity. Australian-based company has to pay its dividend payments from already taxed profits either or not taxed profits to distribute. In the first variant, the shareholders of the company credit for the tax paid on his income tax and the dividend is finally free of tax. Taxable in the second variant, the receiver, receives the dividend as income.

Losses of a company can only be offset against future profits, a handover of the losses to shareholders is excluded.

•Capital Gains Tax: In Australia, the tax unrealized appreciation of assets, such as the capital appreciation between purchase and sale of a property. This also applies to assets with respect to Australia, which are not owned by Australian residents. The realized capital gain is included in the income tax return of the taxpayer.

•Withholding Tax: This is a withholding tax on interest generated in Australia and dividend income or royalties from non-resident persons in Australia. The rate on such income for persons residing in Germany is 10 percent, only dividend payments from already taxed profits by companies are tax free.

•Fringe Benefit Tax: This is a tax on fringe benefits, which can get the employer to an employee. An example would be the free supply of a company car for private use. The specialty of this tax is that it is paid by the employer and the employee's performance receives tax-free.

•Capitalization: In Australia, there are rules against "thin capitalization". The aim is to avoid that ...