Australia: Diverted Profits Tax Legislation Enacted
The bill implementing the diverted profits tax (DPT) has been passed by the Australian government. The bill includes the imposition of a 40% penalty tax on any profits that have been artificially diverted from Australia by entities with annual global income of AUD$1 billion or more.
The additional tax will be imposed through the General Anti-Avoidance Rule and therefore bypass tax treaty obligations. It will go into effect July 1, 2017.