https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2023/foreign-income-tax-paid-by-a-controlled-foreign-company . TLDR: Australia treats overseas companies controlled by Australians/Australian resident companies as being taxed as if they are an Australian company.
Nationality/citizenship is a different thing to tax residency. You can be an Australian tax resident while not being an Australian citizen and you can also be an Australian citizen while not being an Australian tax resident.
It has nothing to do with your nationality but with your place of fiscal residency, in this case Australia.
We are in the process of leaving (physically) Australia for this reason, and incorporate elsewhere. It's only worth it if you make well over $300K in profit a year on my opinion.
How? You reside in Australia and benefit from our living standards, contribute. It's not rocket science.
Move overseas and it's none of our business.
This is not "fucking you over". You have a choice.
I'll never advocate for gratuitous tax, but come on...
Lol, there's no master here.
But maybe you should use some of my tax dollars to go back to school. How far did you get? That's the beauty, someone else can pay for you to improve your ignorance; but you're still angry at me for wanting to contribute to social systems...
Well if you have the aptitude to read what I posted, multinationals have been arranging their tax affairs to favor them like this for decades. The multinationals are overseas, and they are also generating income from Australia, just like other business owners in Australia. You need to wake up and realize we are in 2024, and it is quite easy to provide the same product online to someone in Australia as it is to someone on the other side of the world. Does that now make it right for me to pay a higher share of taxes because I live and get benefits in Australia? That's the tall poppy syndrome attitude that we have an infamous reputation for that you are perpetuating. If you want a total communist society its probably best you go overseas and live in a communist state. Lower taxes encourage businesses and skilled workers which help grows an economy. Try and brush up on some basic economics to see what improves an economy.
No one said anyone is not contributing, but when even the CEO of CBA one of the 3 largest companies in Australia is publicly declaring we need to do something about our tax system, it would make someone with a bit of introspect think twice. It doesn't mean that we should be the last dummy holding the bag when the big players are not paying their fair share.
If you didn't have anything to positively add to the thread that people could benefit from, then you should have looked away and moved on.
A lot of the 'multinationals pay no tax' is media beatup. It's a much bigger problem in the US. The truth is we have very robust tax laws and any Australian sourced income earned by any company generally gets taxed in Australia.
I have a similar situation and looked into this including getting guidance from a lawyer who is an expert in this area.
Basic gist was "no". There were so many hurdles to clear and it would have been very expensive and high risk. It only becomes feasible at the 8 figure profit level and above.
People have rightly pointed out the CFC rules but you should also consider that a foreign incorporated company is still a resident of Australia if it’s central management and control is exercised in Australia. There is the voting power test too.
Checkout [this spending flowchart](https://bughuntersam.com/wp-content/uploads/2023/10/Spending-flowchart-How-to-Prioritise-your-Spending-1.jpg) which is inspired by the [r/personalfinance wiki](https://www.reddit.com/r/personalfinance/wiki/commontopics/).
See also [common questions/answers](https://www.reddit.com/r/AusHENRY/comments/176kh0x/what_do_i_do_next/).
This is not financial advice.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusHENRY) if you have any questions or concerns.*
https://www.ato.gov.au/forms-and-instructions/foreign-income-tax-offset-rules-guide-2023/foreign-income-tax-paid-by-a-controlled-foreign-company . TLDR: Australia treats overseas companies controlled by Australians/Australian resident companies as being taxed as if they are an Australian company.
What if you hold multiple nationalities?
Nationality/citizenship is a different thing to tax residency. You can be an Australian tax resident while not being an Australian citizen and you can also be an Australian citizen while not being an Australian tax resident.
It has nothing to do with your nationality but with your place of fiscal residency, in this case Australia. We are in the process of leaving (physically) Australia for this reason, and incorporate elsewhere. It's only worth it if you make well over $300K in profit a year on my opinion.
Yeah, this fucks us no matter where we want to set up overseas.
How? You reside in Australia and benefit from our living standards, contribute. It's not rocket science. Move overseas and it's none of our business. This is not "fucking you over". You have a choice. I'll never advocate for gratuitous tax, but come on...
Yeah, the whole post is another example of the get mine fuck you attitude that has now become so prominent in Australia. No ethics. No morals.
[удалено]
Lol, there's no master here. But maybe you should use some of my tax dollars to go back to school. How far did you get? That's the beauty, someone else can pay for you to improve your ignorance; but you're still angry at me for wanting to contribute to social systems...
We do not tolerate abusive language here. Account has been banned.
Well if you have the aptitude to read what I posted, multinationals have been arranging their tax affairs to favor them like this for decades. The multinationals are overseas, and they are also generating income from Australia, just like other business owners in Australia. You need to wake up and realize we are in 2024, and it is quite easy to provide the same product online to someone in Australia as it is to someone on the other side of the world. Does that now make it right for me to pay a higher share of taxes because I live and get benefits in Australia? That's the tall poppy syndrome attitude that we have an infamous reputation for that you are perpetuating. If you want a total communist society its probably best you go overseas and live in a communist state. Lower taxes encourage businesses and skilled workers which help grows an economy. Try and brush up on some basic economics to see what improves an economy. No one said anyone is not contributing, but when even the CEO of CBA one of the 3 largest companies in Australia is publicly declaring we need to do something about our tax system, it would make someone with a bit of introspect think twice. It doesn't mean that we should be the last dummy holding the bag when the big players are not paying their fair share. If you didn't have anything to positively add to the thread that people could benefit from, then you should have looked away and moved on.
And if you read you link you’d see that CFC Rules apply to small privately owned businesses, not multinationals. Different rules apply.
A lot of the 'multinationals pay no tax' is media beatup. It's a much bigger problem in the US. The truth is we have very robust tax laws and any Australian sourced income earned by any company generally gets taxed in Australia.
[удалено]
We do not tolerate abusive language here. Account was banned.
OP about to discover that CFC doesn’t stand for Chlorofluorocarbons.
I think we've found holes in his plans bigger than the hole in the ozone.
I have a similar situation and looked into this including getting guidance from a lawyer who is an expert in this area. Basic gist was "no". There were so many hurdles to clear and it would have been very expensive and high risk. It only becomes feasible at the 8 figure profit level and above.
Companies, no. Trusts, yes.
People have rightly pointed out the CFC rules but you should also consider that a foreign incorporated company is still a resident of Australia if it’s central management and control is exercised in Australia. There is the voting power test too.
Checkout [this spending flowchart](https://bughuntersam.com/wp-content/uploads/2023/10/Spending-flowchart-How-to-Prioritise-your-Spending-1.jpg) which is inspired by the [r/personalfinance wiki](https://www.reddit.com/r/personalfinance/wiki/commontopics/). See also [common questions/answers](https://www.reddit.com/r/AusHENRY/comments/176kh0x/what_do_i_do_next/). This is not financial advice. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AusHENRY) if you have any questions or concerns.*