GST for Overseas businesses and Small business company tax rate cut
For your 2016 tax return, the small business company tax rate has been reduced from 30% to 28.5%. This lower rate likewise applies to small businesses that are corporate unit trusts and public trading trusts. If you complete your own company tax return, use the new rate of 28.5% when working out the ‘Tax on taxable or net income’ (T1) in the ‘Calculation statement’
The franking credit top stays unaltered at 30% (even if you are eligible for the reduced company tax rate of 28.5%)
You are a small business if you are a sole trader, partnership, company or trust that has an aggregated turnover less than $2 million.
From 1 October 2016 there is good news for overseas business clients as they are no longer subject to GST. Overseas businesses supplying Australian businesses don't need to register for GST if they:
- Only produce GST-free supplies through an enterprise carried on outside Australia
- Have a business presence in Australia of less than 184 days in a 12-month period
- Have a GST turnover below the GST registration threshold of AUD $75,000 (because certain supplies will no longer be included in the GST turnover).
So if you are in Epping and running a small business and looking for someone to discuss about GST and tax. Then look no further Absolute Accounting Solutions is there for you. We with the help of our expert team provide the best solution to all your queries. Our dedicated team of specialists will take the stress out of your bookkeeping, accounting and taxation.
At Absolute Accounting solutions we make accounting an absolute breeze. So for more information Call us at 1300 488 330 or visit http://www.absoluteaccountingsolutions.com.au/