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oimlog(Newbie)Newbie
5 Dec 2023

Hi ATO,

if i own a single-member US LLC and reside in Australia as an Australian permanent resident, how will my income from my US LLC is taxed in Australia? I'm not American and have no connection to the USA except the LLC. I read that an LLCs is a pass-through entity so I don't have to pay any tax to the USA except the witholding tax of 30% which would come down to 15% based on DTA between the countries. After paying 15% withholding tax, how wil ATO tax the income I receive to my Australian bank account? I don't know much about how CFC rules affect to individuals residing in Australia but owning an LLC in USA. To my current understanding, all the tax I pay to ATO is personal income tax of about 30% after I transferred my income from USA to Australia. Are there any other things that I should be aware of?


Many many thanks in advance.

3,244 views
2 replies
3,244 views
2 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
15 Dec 2023

Hi @oimlog


You definitely asked the hard questions and we got advice from our tech team for you.


As an Australian resident for tax purposes, you are assessable on your worldwide income at your marginal tax rate.

 

Where tax is paid on the same income in another country, you may be entitled to a foreign income tax offset, which provides relief from double taxation. The foreign income tax must be correctly imposed under the relevant foreign law and in accordance with any tax treaty the country has with Australia. As you have identified, Australia has a tax treaty with the USA.

 

The following web guidance provides some information in relation to the issues you've raised:

However, the rules around taxation in relation to your interest in a US LLC are complex and we're unable to answer your question in detail with the information available. You can seek tailored technical assistance for more specific advice.

All replies

Most helpful reply

AriATO(Community Support)Community Support
15 Dec 2023

Hi @oimlog


You definitely asked the hard questions and we got advice from our tech team for you.


As an Australian resident for tax purposes, you are assessable on your worldwide income at your marginal tax rate.

 

Where tax is paid on the same income in another country, you may be entitled to a foreign income tax offset, which provides relief from double taxation. The foreign income tax must be correctly imposed under the relevant foreign law and in accordance with any tax treaty the country has with Australia. As you have identified, Australia has a tax treaty with the USA.

 

The following web guidance provides some information in relation to the issues you've raised:

However, the rules around taxation in relation to your interest in a US LLC are complex and we're unable to answer your question in detail with the information available. You can seek tailored technical assistance for more specific advice.

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single-member US LLC tax in Australia | ATO Community