Hi everyone, I’d really appreciate some guidance on this.
I’m an international student in Australia and have already set up an ABN to publish a game. I’m planning to work with a group of friends based in Vietnam. We want to develop and publish the game under my name while they still own the IP under a company in Vietnam.
My main concern is understanding how the money flow and taxes should work in this situation.
From what I currently understand:
- I will publish the game on Steam.
Steam will pay the revenue directly to me.
- I will then distribute shares (royalties) to my friends in Vietnam.
- I would only pay tax on the portion of income that I actually keep after sharing revenue.
However, I’m not sure if this understanding is correct.
Some specific questions I have:
- Is this the right way to handle revenue and taxation?
- Do I need to consider a tax treaty between Australia and Vietnam?
- How should I properly record and report these payments for tax purposes?
Any advice or pointers would be really helpful. Thanks in advance!
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1 replies
Author: JayATO(Community Support)Community Support 30 Apr 2026
Hi @vuphanngocminh,
You need to declare the full amount of revenue you receive from Steam in your Australian tax return, not just the portion you keep after paying your friends in Vietnam. When you receive the total revenue and then distribute shares to your friends, those payments are considered business expenses that you can claim as deductions.
As a sole trader with an ABN, you'll report the royalty income as other business income in the business and professional items schedule of your tax return. You can then claim the amounts you pay to your friends in Vietnam as business deductions, which will reduce your taxable income. You'll need to keep proper records of all payments you make to them, including dates, amounts, and the reason for the payments.
There are additional considerations for your situation:
- you need to check if you should register for GST based on your expected annual turnover
- you may need to consider foreign resident withholding obligations when making payments to your friends in Vietnam
- the tax treaty between Australia and Vietnam may be relevant, depending on the nature of the payments and how the arrangement is structured
- your visa conditions as an international student may have implications for carrying on business in Australia.
The situation you've described involves cross-border payments, intellectual property arrangements, and potentially complex tax obligations. You'll need to get professional advice from a registered tax professional or tax agent to work out the proper way to structure this arrangement, determine your withholding obligations, and confirm how to report everything correctly.
