Franchise
14. Taxation Considerations
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 27 Jul 2015
- Payments received by a franchisor from a franchisee will form part of the franchisor's assessable income for tax purposes.
- Fees included in the taxable amount include:
- the initial franchising fee;
- any renewal fees;
- advertising and marketing fees;
- transfer fees;
- training fees; and
- service fees or royalties
How these amounts are taxed and at what rate will depend on whether the franchisor is set up as an individual, company or other entity.
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