Filing of company tax return(s) while living in Australia

Most business taxes are administered and collected by the Australian government through the Australian Tax Office (ATO). A business can save money by ensuring it pays the right amount of tax on time and by taking advantage of any tax benefits it may be entitled to. The main taxes that affect businesses in Australia are:

ContentsHow to complete business income tax returns1. Use of software compatible with Standard Business Reporting (SBR).2. Registered tax agent 3. By paperLast takeaway

• Corporate tax (income) – a company resident in Australia is subject to corporation tax at a rate which has been set by the government. In contrast, a non-resident company is taxed on its Australian source of income at the same rate as a resident company.
• Goods and Services Tax (GST) – is a broad-based national consumption tax imposed on the majority of goods and services sold and consumed in Australia. As a business, you must register for GST with the Australian Taxation Office.
• Capital gains tax – this form of tax applies to any capital gain realized by the sale of assets. It is important to note that capital gains tax is often paid as part of income tax.

It is important to note that in order to file your business return, you must first have a Tax File Number (TFN) to ensure that all payments reflect the correct account. If this is your company's first tax return, you must first file a request. The request for a tax file number can be found here. Now that we have prepared the basics of taxation, this article will guide you on how to file your corporation tax return when living in Australia.

When filing your business tax return, you will need to declare:

• Taxable income
• Compensations and tax credits
• Pay As You Go (PAYG) Withholding Tax Installments

How to complete business tax returns

There are three main ways to file your business tax return;

1. Using software compatible with Standard Business Reporting (SBR).

SBR software is the standard approach to digital record keeping designed to simplify a company's reporting obligations. File returns can be prepared and filed with the Australian Revenue Service from SBR-compliant business software. Digital service providers often program standard business reporting rules into the software, making it "SBR-ready".

Benefits of the software include, but are not limited to:

• It can be reused.
• It is integrated with the company's accounting/management software, reducing the time that could have been spent gathering information, filling out forms, and submitting tax returns to the government.
• SBR uses a company's business transactions to prepare reports. Thus, a company would not need to re-enter information for multiple reporting obligations.

2. Registered tax agent

This is a qualified and professional individual or company who can prepare and file your tax return. The services of a registered tax agent could be provided via online/digital forms or in person. In Australia, a tax agent must be registered with the Tax Practitioners Board (TPB). You can check if the tax agent is registered by visiting the official TPB website. The benefits of using a registered tax agent include, but are not limited to:

• They are verified to have met and maintained the required qualifications and have the necessary experience
• They follow the Code of Ethics.

The majority of registered tax agents have a special housing program. This means they have the privilege of filing returns for clients after the October 31 tax deadline. If you plan to work with a licensed tax agent, it is advisable to contact them before October 31st. This will help you get the most out of their accommodation program dates.

3. By paper

There are two main ways to order a paper to file your business tax return:

• Using the Australian Tax Office's automated self-help publications ordering service.
• By calling the Australian Tax Office Publications Distribution Service on 1300 720 092. You can speak to a representative between 8am and 6pm, Monday to Friday.

If the above is not to your liking, you can file your business tax return by post in Australia at the address below:

Australian Revenue Service

Box GPO 9845

[include name and the postcode of your capital city]

An example of the above format would be:

Australian Revenue Service

Box GPO 9845

SYDNEY NSW 2001

Last take-out

Filing your business tax returns doesn't have to be a long, tedious and exhausting process. With options like SBR-enabled software or a registered tax agent, you save time. If you decide to file your taxes via hard copy, make sure you know the full title of each publication you order.