marcos.berto

I am writing from a Brazilian company, which develops and provides ERP systems. We are starting some business with the Australian market and I was wonder if you could give us some information about withholding taxes.

As a worldwide software providers, we have seen in some countries withholding for prepayments. However, I could not find any information about this subject in Australian legislation.

Is there any type of transaction, or any specific type of market, that requires to withhold taxes for prepayments?

Example:

A company paid in advance for a supplier an amount of $ 5,000.00 regarding some services or goods that will be provided in the following month.

If this supplier is located outside Australia, as I found on legislation, it is mandatory to withhold taxes.

My question in this case is: Do I have to withhold taxes on $ 5,000.00?

How this company will clear this advance with an invoice after, once there will be withholding on the invoice also?

Regards