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Transfer pricing is very specialized area, not every business will have international transactions. We wrote this article is for you to get some ideas about Australian transfer pricing concepts and risks. We strongly suggest you find transfer pricing specialist to get suggestions before you arrange or perform any cross-border international transactions. Australia and International transfer pricing – concepts and risk assessmentAustralia's transfer pricing rules seek to avoid the underpayment of tax in Australia. The rules aim to make sure that businesses price their related-party international dealings in line with what is expected from independent parties in the same situation.Pricing for international dealings between related parties should reflect the right return for:· the activities carried out in Australia;· the Australian assets used (whether sold, lent or licensed);· the risks assumed in carrying out these activities.Pricing that does not comply with Australia's transfer pricing rules is often referred to as 'international profit shifting'.You should carefully consider the terms and conditions of any international dealings you enter into with related parties to ensure that your business outcomes properly reflect economic activity in Australia.Australia's double-tax agreements and domestic law require that pricing of goods and services and allocation of income and expenses between related parties comply with the arm's length principle.What’s situation has Transfer Pricing If you have international transactions with a related party – such as a loan from your foreign subsidiary – your Australian tax can be affected if the amounts for the transaction don't comply with the arm's length principle under the transfer pricing rules.Some multinational businesses attempt to shift their profits to low-tax jurisdictions by setting unrealistic prices for their actual commercial or financial dealings with their related parties.Businesses with related party international dealings may have their transfer pricing reviewed or audited by Australian Tax Office (“ATO”), with the possibility of pricing adjustments and penalties.The more significant and broader the scope of a business's international dealings with related parties, the more likely ATO is to review those dealings. Businesses with significant levels of dealings whose tax performance is low compared to industry standards are at the greatest risk of review.The arm's length principle and comparabilityThe arm's length principle uses the behaviour of independent parties as a guide or benchmark to determine in international dealings between related parties:· the pricing of goods and services, and· how income and expenses are allocated.It involves comparing what a business has done and what an independent party would have done in the same or similar circumstances. This principle is supported by all Organisation for Economic Co-operation and Development (OECD) countries. Many factors may influence prices or margins, so you need to closely examine the dealings you're comparing and the circumstances of the parties involved. This comparison with arm's length activity means it is difficult to achieve absolute precision and certainty. For dealings to be comparable:· none of the differences between the situations should be material, or· reasonably accurate adjustments can be made to eliminate the effect of any such differences.The materiality of any differences depends on the facts and circumstances of each case and recognising that there's likely to be some uncertainty in the judgments that have to be made.Applying the arm's length principleIn assessing compliance with the arm’s length principle, you should exercise commercial judgment about the nature and extent of documentation appropriate to your particular circumstances. Both the ATO and the OECD state that businesses only need to reasonably assess whether their dealings with related parties comply with the arm’s length principle. They should not be expected to prepare or obtain documents beyond the minimum needed to do this.Businesses should consider the level of certainty they wish to achieve, taking into account the impact of international dealings with related parties on their overall business. This assessment will determine the level of risk to which a business is exposed.Businesses risk having a transfer pricing audit if they do not have proper processes to determine arm's length prices and cannot demonstrate to ATO the methods they've used to determine their prices. They also risk a transfer pricing adjustment and penalties as a consequence of any audit.Arm's length methodologiesThere are several internationally accepted methodologies that your business can use to comply with the arm's length principle. Australia's transfer pricing rules do not prescribe any particular methodology or preference to arrive at an arm's length outcome. You should seek to adopt the method that is best suited to the circumstances of each case.Whatever method you use should give a commercially realistic outcome. It is generally expected that a reasonable business person would seek to:maximise the price received for supplying property or services, taking into account their business strategy, economic and market circumstances, and minimise the costs associated with acquiring property or services.be adequately rewarded for any activities carried out. Documentation requirementsYou must keep documentation that can substantiate compliance with the arm's length principle.Transfer pricing documentation and Subdivision 284-E provides further details on how to demonstrate that you have complied with the principle.There are sound practical reasons why you should adequately document compliance with the arm's length principle, namely:to reduce the risk of audit by ATO, and dispute with ATOto help explain your position to ATOto minimise penalties in the event of an audit adjustment, as any penalties will take into account the extent and quality of the documentation kept.International dealings scheduleIf your business is engaged in international dealings with related parties, and has more than $2 million of related-party dealings, you are required to complete an international dealings schedule (IDS) and lodge it with your income tax return for that year.The IDS imposes obligations to disclose information about related-party international dealings, including:· the nature and amount of certain categories of transactions· details of dealings of a financial nature· receipts or payments of non-monetary consideration· details of restructuring events· details of arm's length methodologies used· the level of documentation held to support the selection and application of the most appropriate arm's length methodologies· details of disposals or acquisitions of any interest in a capital asset.The IDS allows you to notify ATO if you are eligible and choosing to adopt any of the simplified transfer pricing record-keeping options. ATO developed some simplified transfer pricing record-keeping options (simplification options) so eligible businesses can opt to minimise record-keeping and compliance costs.The IDS may change from year to year, so make sure you check the schedule and accompanying instructions for the income year you are addressing. You will need to refer to Schedule 25A for relevant income years prior to 2011–12.ATO will publish instructions each year to help businesses complete their IDS.Take care when completing your IDS. ATO uses the information provided to help identify businesses that may pose a transfer pricing risk. If you fail to complete an IDS where required, you may incur penalties or be prosecuted.We suggest you to engage a transfer pricing specialist to help you to prepare the IDS and related documents. Transfer pricing risk assessmentBusinesses with related-party international dealings may face:· a client risk review· a subsequent audit, with possible pricing adjustments and penalties.ATO generally allocates resources to transfer pricing cases based on the perceived risk to revenue of businesses not complying with the arm's length principle.The broader and more significant the scope of a business's international dealings with related parties, the more likely we are to do a client risk review.Your business is at the greatest risk of a client risk review if it:· has significant levels of international dealings with related parties· pays less tax compared to industry standards· has recently undertaken business restructures that materially affect its related-party international dealings.Transfer pricing is very specialized area, not every business will have international transactions. We wrote this article is for you to get some ideas about Australian transfer pricing concepts and risks. We strongly suggest you find transfer pricing specialist to get suggestions before you arrange or perform any cross-border international transactions. Claire was working in big four accounting firms specialized in transfer pricing, Claire and her international colleagues/partners in CTAC group from China, US, Korea, HK, Germany, etc to support our clients to deal with international transactions issues. Chang Accounting Advisory Pty Ltd, we are CPA practice and tax agent. If you or your families or friends need our services, please feel free to contact our team for any assistance. This article is for informational purposes only and does not form part of our advice. This article is based on Australian Taxation Office (ATO). Please contact our team if you need any assistance.Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, WeChat: clairechang26Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, WeChat: michellejc
转让定价是一个非常专业的领域，并不是每个企业都会有国际交易。我们写这篇文章是为了让您了解澳大利亚转让定价的概念和风险。我们强烈建议您在安排或执行任何跨境国际交易之前，先聘请转让定价专家以获得建议。澳大利亚和国际转让定价——概念和风险评估澳大利亚的转让定价规则旨在避免跨国企业在澳大利亚少缴税款。这些规则旨在确保企业对其关联方国际交易的定价,与在相同情况下与独立第三方的交易预期一致。关联方之间国际交易的定价应反映以下方面的正确回报：• 在澳大利亚开展的活动；• 使用的澳大利亚资产（无论是出售、借出还是许可）；• 开展这些活动所承担的风险。不符合澳大利亚转让定价规则的定价通常被称为“国际利润转移”。您应仔细考虑与关联方进行的任何国际交易的条款和条件，以确保您的业务成果正确反映澳大利亚的经济活动。澳大利亚的双重征税协议和国内法要求关联方之间的商品和服务定价以及收入和费用分配符合公平交易原则。什么情况有转让定价如果您与关联方进行国际交易（例如从您的外国子公司获得贷款），如果交易金额不符合转让定价规则下的独立交易原则，您的澳大利亚税收可能会受到影响。一些跨国企业试图通过为其与关联方的实际商业或金融交易设定不切实际的价格来将利润转移到低税收管辖区。有关联方国际交易企业的转让定价可能会受到澳大利亚税务局（“ATO”）的审查或审计，并可能进行价格调整和处罚。企业与关联方的国际交易越重要、范围越广，ATO 就越有可能审查这些交易。与行业标准相比，税收表现较低，交易量大的企业面临的审查风险最大。独立交易原则和可比性独立交易原则以独立各方的行为作为指导或基准来确定关联方之间的国际交易：• 商品和服务的定价，以及• 如何分配收入和支出。它涉及比较企业所做的事情和独立方在相同或类似情况下会做的事情。这一原则得到所有经济合作与发展组织 (OECD) 国家的支持。 许多因素可能会影响价格或利润，因此您需要仔细检查您正在比较的交易以及相关各方的情况。这种与独立交易活动的比较意味着很难达到绝对的精确度和确定性。 为了使交易具有可比性：• 情况之间的任何差异都不应该是重大的，或者• 可以进行合理准确的调整以消除任何此类差异的影响。任何差异的重要性取决于每个案件的事实和情况，并认识到必须做出的判断可能存在一些不确定性。应用独立交易原则在评估是否符合独立交易原则时，您应该对适合您特定情况文件的本质和范围进行商业判断。 ATO 和 OECD 都规定，企业只需合理评估其与关联方的交易是否符合独立交易原则。不应期望他们准备或获取超出执行此操作所需的最低限度的文件。企业应考虑他们希望达到的确定性水平，同时考虑与关联方的国际交易对其整体业务的影响。该评估将确定企业面临的风险水平。如果企业没有适当的流程来确定公平交易价格，并且无法向ATO展示他们用来确定价格的方法，那么他们就有可能接受转让定价审计的商业风险。作为审计的结果，他们还面临转让定价调整和罚款的风险。公平交易方法您的企业可以使用多种国际公认的方法来遵守独立交易原则。澳大利亚的转让定价规则没有规定任何特定的方法或偏好来达成公平交易结果。您应该寻求采用最适合每种情况的方法。无论您使用什么方法，都应该给出商业上可实现的结果。通常期望一个理性的商业人士会寻求：• 考虑到他们的商业战略、经济和市场环境，最大限度地提高提供财产或服务的价格，并尽量减少与购买财产或服务相关的成本。• 为所开展的任何活动获得足够的奖励。文件要求您必须保留能够证明符合独立交易原则的文件。转让定价文件和细分284-E提供了有关如何证明您已遵守该原则的更多详细信息。有充分的实际理由说明您应该充分记录对独立交易原则的遵守情况，即：• 降低被ATO审计和与ATO发生争议的风险• 帮助向ATO解释您的立场• 在进行审计调整时尽量减少处罚，因为任何处罚都将考虑所保存文件的范围和质量。国际交易时间表如果您的企业与关联方进行国际交易，并且关联方交易额超过 200 万澳币，则您需要填写一份国际交易计划表 (IDS)，并将其与您当年的所得税申报表一起提交。IDS 规定了披露有关关联方国际交易信息的义务，包括：• 某些类别交易的性质和金额• 财务性质的交易详情• 非货币对价的收入和付款• 重组事件的详细信息• 使用的独立交易方法的详细信息• 为支持选择和应用最合适的独立交易方法而持有的文件水平• 出售或收购任何资本资产权益的详情。如果您符合条件并选择采用任何简化的转让定价记录保存选项，IDS 允许您通知 ATO。 ATO 开发了一些简化的转让定价记录保存选项（简化选项），因此符合条件的企业可以选择将记录保存和合规成本降至最低。IDS 可能每年都在变化，因此请务必查看您所针对的收入年度的时间表和随附说明。对于 2011-12 年之前的相关收入年度，您需要参考附表 25A。ATO 将每年发布说明以帮助企业完成 IDS。填写IDS时要小心。 ATO 使用所提供的信息来帮助识别可能构成转让定价风险的企业。如果您未能按要求填写 IDS，您可能会受到处罚或被起诉。我们建议您聘请转让定价专家，协助您填写IDS以及相关的资料。转让定价风险评估进行关联国际交易的企业可能面临：• 客户风险审查• 后续审计，可能进行价格调整和处罚。ATO通常根据不符合独立交易原则的业务，根据对收入的感知风险来分配资源到转让定价的案例。企业与关联方的国际交易范围越广、越重要，我们就越有可能进行客户风险审查。如果出现以下情况，您的企业将面临客户风险审查的最大风险：• 与关联方进行大量国际交易• 与行业标准相比，缴纳的税款更少• 最近进行了对其关联方国际交易产生重大影响的业务重组。 转让定价是一个非常专业的领域，并不是每个企业都会有国际交易。我们写这篇文章是为了让您了解澳大利亚转让定价的概念和风险。我们强烈建议您在安排或执行任何跨境国际交易之前，先聘请转让定价专家以获得建议。Claire曾在四大会计师事务所专门从事转让定价工作，Claire和她所在的CTAC集团来自中国、美国、韩国、香港、德国等地的国际同事，支持我们的客户处理国际交易问题。Chang Accounting Advisory Pty Ltd，我们是执业注册会计师和税务代理人。 如果您或您的家人或朋友需要我们的服务，请随时联系我们的团队寻求帮助。 本文仅供参考，并不构成我们建议的一部分。本文基于ATO的指引。我们可以为您提供专业建议并协助您的公司满足您的会计和税务需求，可以成为您的外包财务团队来帮助您的业务发展。如果您需要任何帮助，请联系我们的团队。 Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, wechat: clairechang26Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, wechat: michellejc
If you are selling or buying new residential premises or potential residential land, you may need to pay GST at settlement. The way GST is paid for certain property transactions affects purchasers, suppliers and their representatives.From 1 July 2018, at settlement most purchasers pay both:• the withheld amount of GST direct to Australian Tax Office (ATO);• the balance of the sale price of the property, minus the withholding amount, to the supplier.This applies to both:• new residential premises;• land that could be used to build new residential property – potential residential land.If you are purchasing propertyIf you're purchasing a property, ensure you have a written notification advising whether or not you have a withholding obligation on the property.Withholding obligationIf you have a withholding obligation, you must:• have a written notification from the supplier stating if the sale is subject to GST• lodge Form one: GST property settlement withholding notification• lodge Form two: GST property settlement date confirmation• pay the withheld amount to ATO (to the nearest dollar).You don't need to register for GST just because you have a withholding obligation.Using a representativeIf you authorise a representative to lodge the forms on your behalf, such as tax agent, you're required to provide a signed declaration.Note: Conveyancers can't provide GST advice unless they're a registered tax or BAS agent.Withholding amountThe amount a purchaser must withhold (rounded down to the nearest dollar) is generally either:• 1/11th of the contract price (for taxable supplies)• 7% of the contract price (for margin scheme supplies)• 10% of the GST exclusive market value of the supply for supplies between associates (for consideration less than GST-inclusive market value).If you are selling propertyIf you're selling residential premises or potential residential land you must:• notify the purchaser in writing (supplier notification)• advise whether they need to pay a withholding amount from the contract price for the property or not• state the withholding amount.This can be included in the sales contract or in a separate document prior to settlement. Most states have updated their standard contracts to include this information.If you have made a mistake on the notification, you must provide the purchaser with an amended one.You may incur penalties if you fail to provide the required notice.The purchaser pays the withholding amount directly to ATO at the time of settlement – instead of to seller.Reporting obligationsThe standard elements of selling a property and reporting the GST on your sales apply.On your business activity statement (BAS) you must report:• all property sales at label G1;• GST on sales at label 1A.You receive a credit in your GST property credits account. This is the withheld amount paid by the purchaser. If there are multiple suppliers in the property transaction, it is your portion of the withheld amount.This credit is transferred from the GST property credits account into your activity statement account when you lodge your activity statement for the relevant period.If you're unsure of the correct GST treatment of the supply, we recommend you seek advice from us or your tax professional.Conveyancers and real estate agents can assist purchasers to complete the forms. However, they can't provide GST advice unless they're registered tax or BAS agents.These regulations are quite complicated depends on your situation; you might do not need to withhold GST at settlement. We strongly suggest you seek professional advice before undertaking any sales contract.Chang Accounting Advisory Pty Ltd, we are CPA practice and tax agent. If you or your families or friends need our services, please feel free to contact our team for any assistance. This article is for informational purposes only and does not form part of our advice. This article is based on Australian Taxation Office (ATO) and Tax Practitioners Board. Please contact our team if you need any assistance.Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, WeChat: clairechang26Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, WeChat: michellejc
如果您要出售或购买新的住宅或潜在的住宅用地，您可能需要在结算时支付 GST。某些物业交易的 GST 支付方式会影响购买者、供应商及其代理人。从 2018 年 7 月 1 日起，大多数买家在交割时同时支付：• 直接向澳洲税务局支付预扣的 GST 金额；• 物业销售价格减去预扣税款后的余额给卖家。这适用于两者：• 新的住宅楼宇；• 可用于建造新住宅物业的土地——潜在住宅用地。如果您购买房产如果您要购买房产，请确保您有书面通知，告知您是否对该房产负有预扣税义务。预扣义务如果您有预扣税义务，您必须：• 有供应商的书面通知，说明销售是否需要缴纳 GST• 提交表格一：GST 财产交割预扣通知• 提交表格二：GST 财产交割日期确认• 向澳洲税务局支付预扣金额（以最接近的整数澳币计量）。您不需要仅仅因为您有预扣税义务而注册 GST。使用代理人如果您授权代理人代表您提交表格，例如税务代理,您需要提供签署的声明。注意：房产过户师不能提供 GST 的建议，除非他们是注册税务或 BAS 代理人。代扣代缴金额购买者必须扣留的金额（四舍五入到最接近的澳币整数单位）通常是：• 合同价格的 1/11（对于应税供应）• 合同价格的 7%（用于差价方案供应）• 10% 的 GST，不包括市场价值的供应，用于员工之间的供应（考虑低于包含 GST 的市场价值）。如果您要出售房产如果您要出售住宅或潜在住宅用地，您必须：• 以书面形式通知买方（供应商通知）;• 告知他们是否需要从物业的合同价格中支付预扣款;• 说明预扣金额。这可以包含在销售合同中，也可以包含在交割前的单独文件中。大多数州已更新其标准合同以包含此信息。如果在通知上出现错误，您必须向购买者提供修改后的通知。如果未能提供所需的通知，您可能会受到处罚。在交割的时点，购买者直接支付预扣款给税务局，而不是买家。报告义务出售房产和报告GST的标准要素适用。在您的商业活动声明 (BAS) 中，您必须报告：• 标签为 G1 的所有房地产销售；• 标签为 1A 的销售商品及服务税。您在 GST 财产抵免账户中收到抵免额。这是买方支付的预扣金额。如果物业交易中有多个供应商，则为您的预扣金额的一部分。当您提交相关期间的活动报表时，此抵免额将从 GST 财产抵免账户转入您的活动报表账户。如果您不确定您提供 的GST 处理方式是否正确，我们建议您向我们或您的税务专业人士寻求建议。产权转让人和房地产经纪人可以协助购买者填写表格。但是，除非他们是注册税务或 BAS 代理人，否则他们无法提供GST 建议。这些规定十分复杂，取决于您的个人情况； 您可能不需要在交割时预扣 GST。 我们强烈建议您在签订任何销售合同之前寻求专业意见。Chang Accounting Advisory Pty Ltd，我们是注册会计师执业和税务代理人。 如果您或您的家人或朋友需要我们的服务，请随时联系我们的团队寻求帮助。本文仅供参考，并不构成我们建议的一部分。本文基于ATO的指引。我们可以为您提供专业建议并协助您的公司满足您的会计和税务需求，可以成为您的外包财务团队来帮助您的业务发展。如果您需要任何帮助，请联系我们的团队。Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, WeChat: clairechang26Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, WeChat: michellejc
The margin scheme is a way of working out the GST you must pay when you sell property as part of your business. The margin scheme is subject to eligibility.The margin scheme enables GST to be calculated on a concessional basis. Rules depend on when a property was first purchased.You can only apply the margin scheme if the sale of a property is taxable.Generally, the GST is based on the difference between:· the price the you paid for the property when you first purchased it, and· the subsequent sale price of the property.There must be a written agreement to say the sale of the property is using the margin scheme before the settlement date.If you purchase a property where the margin scheme is applied to the sale, you can't claim a GST credit for the GST included in the price.If you charged the full rate of GST when purchasing a property as part of your business, generally you can claim the GST back. However, you can’t apply the margin scheme on subsequent sales.Eligibility to use the margin schemeIf you sell property as part of your business and you're registered for GST, you may use the margin scheme to work out how much GST you must pay.If you use the margin scheme the parties must have a written agreement to use the margin scheme before settlement. For GST purposes, the settlement date is the date you purchase the property. Most contracts have a tick box stating if the sale is subject to the margin scheme.When you can't use the margin scheme· if you purchased the property as fully taxable and the margin scheme wasn't used· if you weren’t registered or required to be registered for GST at the time of your sale· for sales on or after 17 March 2005, if you - purchased the property as fully taxable and the margin scheme wasn't used;- inherited the property from a person who wasn't eligible to use the margin scheme;- obtained the property from a fellow member of a GST group who wasn't eligible and they purchased it from an entity that wasn't a member of the GST group;- were a participant in a GST joint venture and obtained the property from the joint venture operator who purchased the property through an ineligible sale. · if you're selling property originally purchased, or entered into a contract to purchase, on or after 9 December 2008 and the w entity you bought the property from wasn't eligiblew property was purchased as part of a going concernw property was purchased as GST-free farmlandw property was purchased from an associate for no consideration (no payment).Must be a written agreement for sales on or after 29 June 2005There must be a written agreement to use the margin scheme before settlement for sales on or after 29 June 2005.There is no set format for a written agreement. An agreement must:· be signed by both seller and purchaser· clearly identify the property being sold.The agreement could be included in the sales contract.If you don't have a written agreement when the sale was made, you may ask us for permission to extend the time to obtain the agreement in writing. We don't have discretion to apply the margin scheme where parties don't agree that it applies.Sales before 29 June 2005You don't need a written agreement between the seller and purchaser if the sale was made either:· before 29 June 2005;· on or after 29 June 2005 but you entered into a contract or granted rights or options over the property you are selling before 29 June 2005. For sales made or entered into before 29 June 2005, if you didn't apply the margin scheme when the sale was made, you may ask to account for GST on the sale as if the margin scheme applied. You must show that:· you didn't choose to apply the margin scheme at settlement because of a mistake· you satisfy all other requirements under the margin scheme· the purchaser hasn't claimed a GST credit or a decreasing adjustment for the purchase· you and the purchaser didn't agree on a price that included GST· you aren't making the agreement to avoid paying GST.Methods to calculate the marginMethod depends on purchase dateWhen selling property using the margin scheme that you originally purchased or held an interest in:· after 1 July 2000 – you must use the Consideration method· before 1 July 2000 – you can use either the Valuation method or the Consideration method.Valuation methodUse the valuation method to work out the margin if you originally purchased your property before 1 July 2000. You can only use the valuation method if you hold an approved valuation.Using the valuation method, the margin is the difference between the selling price and the value of the property (usually as at 1 July 2000).Consideration methodYou can use the consideration method to calculate the GST payable under the margin scheme regardless of when you purchased the property you're selling.Using the consideration method:§ the margin is the difference between the property’s selling price and the original purchase price, which is sale price minus purchase price equals the margin§ the sale price must include any settlement adjustments in the sales contract§ don't include any of the following as part of the purchase price w costs for developing the propertyw legal feesw any options you purchasedw stamp dutyw any other related purchase expenses. Chang Accounting Advisory Pty Ltd, we are CPA practice and tax agent. If you or your families or friends need our services, please feel free to contact our team for any assistance. This article is for informational purposes only and does not form part of our advice. This article is based on guidance from Australian Taxation Office. Please contact our team if you need any assistance.Claire Chang, 0497 131 419, claire.chang@changadvisory.com.au, wechat: clairechang26Michelle Cui, 0433 539 870, michelle.cui@changadvisory.com.au, wechat: michellejc