German businesses establishing in Australia face a tax environment that is very different to their own. As Australia’s tax system is relatively complex, the compliance and reporting obligations can be challenging to understand. We offer taxation services for German and other foreign-owned businesses tailored to the needs of their Australian subsidiaries.
Understanding Australia’s taxation system
The key Federal taxes affecting businesses in Australia are company tax, capital gains tax (CGT) on asset disposals, a consumption tax (GST) paid on most goods & services, and employment-based taxes (eg Fringe Benefits Tax). These taxes are administered by the Australian Taxation Office (ATO). Australia also has a number of State and Territory-based taxes, such as payroll tax, stamp duty and land tax.
As with most European countries, Australia’s international tax system is comprehensive. It includes strict transfer pricing rules, a German-Australian tax treaty, and a wide range of other Double Taxation Agreements (DTAs) that impact cross-border business involving Australia.
One of the keys to Australian business success is understanding how these taxes interact and how they affect your business structures and transactions.
Our German-Australian business taxation services
Accru Felsers offers specialist tax services to help German ‘mittelstand’ and other small-medium European businesses to manage taxation issues for their Australian subsidiaries, from market entry through to success and maturity. These include:
- Tax services for starting an Australian subsidiary We will help you choose the optimum structure that facilitates your business growth in a tax-effective way. A key goal will be to avoid tax inefficiencies arising from double taxation. As well as structuring your Australian business appropriately, we can set up your reporting systems to comply with Australian taxation requirements and integrate them with your company’s own systems. See Starting a business in Australia to learn more.
- Tax services for managing your Australian subsidiary After your Australian subsidiary business is set up, the important considerations become transfer pricing and profit repatriation. Both are key in determining how your business profits are taxed in Australia and in Germany (or other parent company country). See our Transfer Pricing services.
- Tax services for business growth, transition or sale of your Australian operations As the business grows and changes over time, there may be a need for restructuring to ensure the expanded operations have an optimum tax structure. You may also decide to sell the business, acquire or merge with another businesses. In these cases, our International Tax team can advise you on the tax-effective options available. See our International Taxation services.
Accru Felsers international tax advisors
All Accru Felsers international tax advisors are degree qualified, Chartered Accountants and Members of Chartered Accountants in Australia and New Zealand. Our tax partners are typically also Masters of Taxation or International Taxation, Registered Tax Agents and Members of Institute of Taxation in Australia.
Accru Felsers international business team are active with the German-Australian Chamber of Industry and Commerce, and include German, French and Chinese speaking accountants who can discuss international tax technical matters in your native language when required.
Our tax work with German-Australian businesses
Here are some examples of the positive tax outcomes that Accru Felsers has helped German-Australian businesses to achieve:
- We provided tax planning and cross-border tax structuring to enable a German duty-free retailer to tax-effectively restructure their cruise line business throughout the Asia Pacific
- Working with the Australian Tax Office speciality transfer pricing area, we achieved a multi-million tax refund for a German high-tech plumbing fittings manufacturer following an aggressive review by the tax authorities.
- Negotiating with the Australia Tax Office & New Zealand Inland Revenue, we achieved a million dollar tax saving for a voluntary disclosure made in respect to transfer pricing for a large German automotive manufacturer.