From www.pkf.com.au: Australian companies seeking to expand offshore should carefully manage the timing of their taxable presence to avoid tax complexity, thereby maximizing franking credits and minimizing foreign tax obligations.

By initially exporting products without establishing a physical presence, companies can defer foreign taxation while complying with local VAT/GST requirements.

Gradual steps such as holding inventory or hiring employees can trigger a taxable presence, so understanding international tax treaties is crucial for maintaining compliance and optimizing dividends for shareholders.