International Tax Series - Part 2: Expansion into new markets

Published on 16 Oct 2020 | Took place at Online, International

In order to facilitate and increase sales in various foreign markets (Europe, Asia and North America) it is decided to have a local presence in the form of an office or use of local agents in those markets. In particular, Masks will establish a presence in the Netherlands, Hong Kong and the US. Some of the issues that were addressed in this session include:

• issues surrounding the nature and extent of presence – for example, representative office, sales and marketing office etc. and whether a permanent establishment is created
• application of the foreign branch profits exemption – section 23AH
• thin capitalisation and other funding issues, including interest deductibility in Australia for funds used in the branch
• foreign tax considerations
• impact of third-party agencies under both domestic tax law and relevant tax treaty
• indirect issues, VAT/GST, customs duties etc.