Quote:
Originally Posted by Goethe
I definitely will. Thanks for the advice. Happily I posted my query before starting up!
With the above restrictions etc. in mind, would it not be wiser, as Klen says, to register a company overseas? I guess either way, there would be tax liabilities in Australia.
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You would register a company overseas if you were going to do billing overseas as Visa/Mastercard won't process for adult websites in Australia (there are some exceptions to this).
What you want to avoid is what is known as double taxation. If you directly registered a company in your name overseas with a nominee director you would pay company tax in that jurisdiction. However you would also pay personal income tax here. So essentially you will be taxed twice.
If you had a trust/holding company setup then created a trading company which in turn owns the foreign entity you can have all of the IP owned by the holding company and license that IP to any of your local or foreign trading entities. Then you can shift profit, in the form of license fees or management fees back to your holding company. The company tax rate here (presuming all of the budget gets passed) will become 29c. The marginal tax rate for an individual can be as high as 45%. You don't want to be paying 45% tax on income you have already paid company tax on overseas, even if it's in a low tax country like Ireland.