Service of the Month – International Tax
Exploring Services Offered by Accountants in Sydney
Over the upcoming S&W Insight editions, we will discuss the different services that “accountants in Sydney” can offer our clients. You might not be familiar with some ways we can assist you. Hence we aim to inform you about our range of services if you require them.
Expanding Globally with Krestons
In 2010 we joined the international accountants’ network called Krestons. The Krestons network is in over 110 countries and has nearly 200 member firms. All our joint trading partners are included in the countries represented and many other more obscure countries. We now have the ability to access competent professionals, including accountants in Sydney, in all parts of the globe to ensure our clients have access to the best advice, no matter what their international needs are.
Client Examples and Solutions
Some recent examples of client need across the globe that we were able to satisfy include the following:
- Australian resident software company wishing to set up in the US and determine what type of arrangement and entity best suits their needs under the US tax laws. Residency and permanent establishment issues needed to be determined to ensure tax would not be levied in the US and, if so, what amount. Once the entity decision was resolved, there was a need to work out which state of the US the entity was to be set up in, considering the different tax systems in each state. All of this was resolved with discussions with a US Krestons member on the east coast of the US. They now also look after the ongoing compliance work for the client.
- Australian resident company in the IT sector has set up in various countries worldwide, including Singapore and European countries, but now wants to set up in the US. The critical issue here was what the after-tax profit would be from the profit made in the US once it is remitted back to Australia. It was essential to avoid double taxation, and any tax paid in the US was available as a credit in Australia if possible. As accountants in Sydney, we liaised closely with our Krestons network member in San Diego to ensure the optimal result was achieved after all taxes were levied in both countries.
- This client has a property in London owned by an Australian trust, and we liaised closely with our Krestons member in London to navigate the complex laws in the UK. These include income tax, capital gains tax, inheritance tax and other local property-related taxes. The rules have changed significantly in the UK for property ownership in the last 5 years, so it was essential to have access to an advisor with a deep knowledge of the UK tax laws who could advise our clients on what must be done. Our client is now in the best possible position to ensure all their statutory responsibilities are attended to and receive proactive advice on the best options going forward.
- A client of S&W has moved back to Belgium as a tax resident of that country but still has significant business interests in Australia, which will continue to provide an income stream to him over the coming years. We liaised with our Krestons network member in Belgium to determine how the dividends, interest, trust distributions and royalties income would be paid from Australia and taxed in Belgium. This enabled us to ensure the structure of his affairs, both in Australia and in Belgium, was optimal.
These are just a few examples of how the Krestons network members have been able to help our clients. The network provides us access to professionals we know personally, as we meet with them at network conferences each year and must go through continuous quality assurance procedures set down by the head office of Krestons in London.
If you are considering expanding into or setting up foreign markets, please get in touch with us to help you manage the process. Cross-border structures are complex at the best of times. Ensuring you have access to the right advice in both countries is vital. The Kreston network membership gives us access to the overseas professionals you need. Please discuss with your client manager should you be contemplating expansion into foreign markets.
Kreston Stanley Williamson Team
*Correct as of January 2021
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek specific advice relating to your particular circumstances. Liability is limited by a scheme approved under professional standards legislation.
