Last updated: 10 June 2012
Taxation
Many states impose a sales tax at the point of sale. The rate varies between states and even between counties.
Income tax and corporate tax laws apply. Advice from taxation professionals is suggested for Australians establishing a business presence in the USA. There are several relevant publications available. Ernst and Young, have a publication entitled ‘Doing Business in the USA’, which provides overviews of the US tax systems. Other accounting firms provide similar publications. The US Small Business Administration provides direct links to state based tax information.
Information on changes made in early 2003 to the Australian and US Double Taxation Treaty are now available from the Treasury Department.
General tax information:
- Excise and regulatory taxes apply to a range of products.
- Retail sales tax is levied by states and municipal bodies, and vary considerably.
Advice on your tax liability situation should be obtained from professional tax advisers, accountants, or lawyers The IRS can also provide advice in this area. The Australian Taxation Office can advise on Australian tax implications.
Top Business Risks
OECD Guidelines for Multinational Enterprises
Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the AusNCP website.
Extractive Industries Transparency Initiative
The Extractive Industries Transparency Initiative (EITI) is a voluntary mechanism which promotes and supports improved governance in resource-rich countries through the full publication and verification of company payments and government revenues from oil, gas, and mining.
The EITI is supported by governments, industry, and non-government organisations around the world. The Australian Government supports the EITI and encourages Australian companies operating internationally to comply with its recommendations.
Bilateral agreements
Australia has social security agreements with several countries that address the issue of 'double super coverage' for employees sent to work overseas. To take advantage of these agreements, Australian employers sending employees overseas to work must apply to the Tax Office for a Certificate of coverage.
For more details, please visit the Australian Taxation Office website.
IP Passport fact sheets
These fact sheets outline foreign Intellectual Property (IP) regimes and some of the issues and challenges which may be faced by Australian exporters.
The current fact sheets are available on the IP Australia website.