International
7. Foreign Branch Profits
Firm / Chambers:
Last updated: 31 Jul 2015
- Foreign branch profits are profits of the company in Australia. They are therefore subject to tax in Australia. The following exemptions are available:
- foreign business income derived by an Australian company by conducting business through a permanent establishment in the foreign country will be exempt. The extent of taxation will depend on whether the foreign country is a listed or unlisted country; and
- capital gains derived on disposal of assets used mainly for producing foreign income through the permanent establishment will be exempt depending on whether the foreign country is a listed or unlisted country.
- Permanent establishment is subject to its definition in the relevant double tax agreement.
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