Understanding your tax obligations

Franchisee businesses can operate under various structures (for example a partnership or company). Like any business, your structure, earnings and assets will determine your taxation obligations.

Ongoing franchise fees are often deductible in the year you pay them. You might be able to deduct other payments including training fees and loan interest from your taxable income.

When you buy, sell, transfer or terminate a franchise there may be taxes applicable, including Capital Gains Tax (CGT) and Goods and Services Tax (GST).