How is the value of a business asset is determined?

·         The valuation of a business asset will vary in each different state or territory.

·         The value of a business asset in NSW includes goodwill and any associated intellectual property. It is most often determined as the price paid if the vendor and purchaser are not related parties. If the value of the business cannot be determined properly by the sale price the formula DV = A x X/Y is applied.

o   DV = dutiable value.

o   A = the value of the business asset based on the absence of debt or the total amount paid for the business asset. The greater of these two options is used.

o   X = the total value of goods or services provided by the business in New South Wales to customers in the 3 prior completed financial years.

o   Y = the total amount of goods and services provided to customers by the business both inside and outside of New South Wales in the 3 prior completed financial years.

·         You can use our LegalPlan™ membership to ask lawyers for tenders in relation to your business stamp duty needs.